Bonds rallied, Rupee Weakens After Appointment Of New RBI Governor

Bonds rallied on Wednesday following the appointment of Shaktikanta Das as the new Reserve Bank of India governor, but the rupee weakened slightly on the back of sharp gains in global crude oil prices.

The benchmark 10-year bond yield fell as much as 8 basis points to 7.45 per cent. The partially convertible rupee was trading at 72.03 per dollar versus its previous close of 71.84 after initially dropping as low as 72.20 at the open.

Das, an ex-finance ministry official, took charge of the Reserve Bank of India on Tuesday, in a swift appointment expected to ease a dispute with the government as it pushes for looser credit rules ahead of a general election.

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