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Economy Jul 23, 2013

Rupee, bonds stronger on RBI move to curb gold imports

The rupee and bonds opened stronger on Tuesday after the Reserve Bank of India (RBI) further tightened gold import rules while the government said it was not ruling out a sovereign bond sale to offshore investors.

The RBI moved to tighten gold imports again on Monday, making them dependent on export volumes with an eye to reducing a record current account deficit, but offered relief to domestic sellers by lifting restrictions on credit deals.

Reuters

Reuters

Gold may get costlier after theRBI made it mandatory to export 20 percent of imports in abid to arrest the rupee's fall and improve the current accountdeficit.

The Indian government denied having ruled out a sovereign bond sale and said "all options are on the table", a statement on Monday said.

At 9:05 a.m., the partially convertible rupee was at 59.57/58 per dollar compared to its close of 59.72/73 on Monday.

The benchmark 10-year bond yield opened down 5 basis points at 8.04 percent.

Reuters

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