Bond prices fell as Rupee hits record low - ZENMoney

Bond Prices fell due to a record low of Indian rupee along with concerns about continued foreign selling and hurt from the overhaul of rules for foreign investors. The prevailing caution ahead of the Jan-March Balance of Payments (BoP) data which is scheduled on Friday are likely to keep the price gains in check.

Rupee closed to a record low against US dollar partly due to large demand for dollars from oil companies coupled with persistent foreign capital outflows from weak local equities along with stronger US dollar against basket of currencies. The Indian currency depreciated despite RBI's intervention apparently as some bank's stop loss got triggered around levels.

US Dollar rose against the Euro after a surprisingly sharp downward revision to first-quarter U.S. economic growth eased concerns the Federal Reserve might soon begin to withdraw stimulus. Euro pressurised further after European Central Bank President Mario Draghi highlighted risks to euro zone growth and said monetary policy will stay accommodative.

US Dollar firmed against the Yen after a surprisingly sharp downward revision to first-quarter U.S. economic growth eased concerns the Federal Reserve might soon begin to withdraw stimulus. The yen supported as investors warily watched China's stressed markets.

Source : Equity Bulls

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