Firm RBI intervention to support rupee; bonds to track central bank moves
MUMBAI, Dec 22 (Reuters) – The rupee is likely to stay supported this week by firm Reserve Bank of India intervention, tempering its negative bias, while bond yields will track the central bank moves and offshore flows. The rupee jumped above 90 per U.S dollar late on Friday after the RBI stepped up intervention, ending the week up more than 1% at 89.27. Traders pointed out that dollar sales from state-run banks helped shore up the rupee, and cutting of speculative wagers against the currency amplified gains. It is quite likely that importers will step in to lock hedges from