Indian swap rates fall, rupee gains after RBI cuts repo rate, CRR

MUMBAI Tue Jan 29, 2013 11:19am IST

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Election 2014

Election 2014

Kashmiris wary as Modi challenges for power.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage