Domestic currency rupee opened on
flattish note after it depreciated on Tuesday after tensions mounted between
India and Pakistan following the airstrike on terror camps in Pakistan-occupied
Kashmir. Political growths are expected
to have a strong effect on rupee and bond markets, in the short-term.
Sovereign bond trades will take signals
from the RBI announcement on open market debt purchases for the month of March.
The RBI stated in a notification on Tuesday that it has decided to buy bonds
under open market operations for an aggregate Rs25,000-crore during the first two-weeks
of March, through two auctions of Rs12,500 crore each. Moreover, the central
bank will consider further liquidity operations and the choice of instruments.
Post news of Pakistani jets
violating Indian air space, the Indian rupee gave up its gains. However, during
mid noon hours, Rupee trades 40 ps lower at 71.47 per US dollar
On the other hand, crude oil recovered
following a surprise draw in crude oil inventory of 4.2 mn barrels for the
week ending 22-February. On Wednesday, The Rupee v/s Dollar pair is expected to
quote in the range of 71.05 and 71.70.