The Indian rupee fell to over a five month-low against the US dollar today, as a wave of risk aversion spilled over from the US into the local stock market, weakening the bourses and sparking fears of portfolio fund outflows.
The spot rupee ended lower at Rs 40.38 per dollar as against its previous close of Rs 40.01.
Government bonds ended higher today because sentiment improved after Finance Minister P Chidambaram said the Reserve Bank of India has declined statutory liquidity ratio status to new oil bonds.
The widely traded 2017 paper ended higher at Rs 103.03 as against its previous close of Rs 102.81.