MUMBAI:The Indian rupee rose slightly and the 9-year bond yield jumped in early trades on 14 February after the central bank had tightened monetary policy by raising the cash reserve ratio.
At 9:01 a.m, the partially convertible rupee was at 44.17 per dollar, stronger than its previous close of 44.205/215.
The 9-year bond yield rose to 8.14 %in initial trades from Tuesday’s close of 7.96 %. There were no early trades in benchmark 10-year bond, which also closed at 7.96 % on Tuesday.
After market hours on Tuesday, the central bank announced a two-stage, 50 basis point increase in the cash reserve ratio (CRR), or the percentage of bank’s total deposits they have to keep with it. The first stage will be effective on 17 February and second on 13 March .