MUMBAI, Sept 17 (Reuters) - The Indian rupee and bond prices trimmed gains after the Reserve Bank of India kept interest rates on hold, dashing hopes the central bank would follow up with action of its own after the government announced fiscal reform measures.
The rupee was trading at 53.76/77 per dollar as of 0537 GMT, weakening from around 53.71 levels before the RBI announcement, although still stronger than its 54.30/31 close on Friday.
The 10-year bond yield rose 5 basis points to 8.17 percent from levels before the data and was down 1 bp on the day.
The one-year swap rate rose 8 bps to 7.68 percent from levels before the data, according to traders’ quotes, though the rate was still down about 5 bps from Friday’s close. (Reporting by Mumbai markets team; Editing by Prateek Chatterjee)