Rupee strengthens past 50/dollar

The Indian rupee firmed on Wednesday on expectations of capital inflows in the wake of gains in Asian stock markets and bond yields fell to fresh 3-½ year lows on mounting expectations of a rate cut. At 9:05 a.m., the partially convertible rupee was at 49.82/83, compared with Tuesday’s close of 50.15/16 per dollar on Tuesday.

The 10-year bond yield was at 6.90 per cent, its lowest since June 2005, compared with Tuesday’s close of 7 per cent.