Date:11/12/2004 URL: http://www.thehindubusinessline.com/2004/12/11/stories/2004121102530100.htm

Back Rupee slides; bonds rally

Our Bureau

Mumbai , Dec. 10

AS the domestic currency tumbled nearly 60 paise in a single session on Friday, the bond market staged a smart upward movement of around 70 paise in certain gilts.

The rupee weakened to finish at 44.79/80 against the dollar as the US currency extended gains in the overseas foreign exchange markets. The domestic currency had finished at 44.21/22 on Thursday.

The Finance Minister's statement that inflation had peaked, led bond yields to crash by nearly 11 basis points in the benchmark paper.

Although volumes were in the range of Rs 3,000 crore, good buying interest was seen on the back of improved sentiment, dealers said.