Photo: The Hindu Business Line
Mumbai, India (BBN) - The benchmark 10-year bond fell sharply, sending the yield up 6 basis points, while the rupee and shares weakened on Wednesday after higher-than-expected consumer price inflation data raised worries about potential central bank rate hikes.
The benchmark 10-year bond yield was up 5 basis points at 7.24 per cent by 0346 GMT, while the partially convertible rupee was trading at 64.53 per dollar versus its previous close of 64.40. The broader NSE share index was down 0.2 per cent, reports The Hindu Business Line.
The rupee plunged by 16 paise to 64.56 against the US dollar due to weak macroeconomic data. According to data released yesterday, industrial growth hit a 3-month low of 2.2 per cent in October, while retail inflation rose to a 15-month high of 4.88 per cent in November.
A weak domestic equity market, rise in global crude oil prices and a resurgent dollar against other currencies ahead of the Fed policy announcement later in the day kept the rupee on the edge. Yesterday, the rupee had shed 3 paise at 64.40 against the US currency in a quiet session.
Meanwhile, the benchmark Sensex fell 104.55 points, or 0.31 per cent, to 33,123.44 in early trade.
BBN/MMI/ANS