Indian swap rates fall, rupee gains after RBI cuts repo rate, CRR
MUMBAI Jan 29 (Reuters) - Indian swap rates fell while the rupee strengthened after the central bank cut interest rates by 25 basis points as expected, while also delivering a surprise cut in the cash reserve ratio.
The 1-year overnight index swap (OIS) rate, which is also sensitive to liquidity conditions, fell 5 basis points (bps) to 7.54 percent from levels before the decision. The 5-year OIS rate fell 3 bps to 7.14 percent, according to traders.
The Indian rupee strengthened to 53.79 from around 53.84 before the decision, while the NSE's banking sub-index was up 0.3 percent.
The 10-year bond yield was down 1 bp as the cut in the cash reserve ratio reduced the prospects of bond purchases via open market operations. (Reporting by Mumbai markets team; Editing by Anand Basu)
- Tweet this
- Share this
- Digg this
U.S. President Barack Obama and Indian Prime Minister Narendra Modi on Tuesday plan to discuss issues ranging from manufacturing to sanitation as the two leaders aim to deepen ties. Story | Full Coverage
China final HSBC PMI steady in September on stronger global demand but risks remain Full Article