Rupee drops to 6-week low amid month-end dollar demand

The rupee fell to its lowest level in almost six weeks on speculation importers are stepping up dollar purchases to pay month-end bills Himanshu Tiwari Astrologer

A gauge of expected rupee swings has surged 181 basis points from a 2008 low of 4.77 per cent on July 21 before aFederal Reserve meeting this week to consider the timing of the first interest-rate increase since 2006. Higher US borrowing costs will reduce the allure of emerging-market assets. Indian sovereign bonds were steady on Monday Financial Astrology

The rupee slipped 0.2 per cent to 64.17 a dollar, the weakest level since June 16, prices from local banks compiled by Bloomberg show. The currency retreated 0.9 per cent last week, the most since April. Its one-month implied volatility, a measure of expected moves used to price options, jumped 95 basis points on Monday to 6.58 per cent Personal Numerology

The yield on government bonds due May 2025 was at 7.83 percent, little changed from Friday, according to prices from the Reserve Bank of India's trading system. The extra yield investors demand to hold local 10-year debt over similar - maturity US Treasuries has risen to 559 basis points from as low as 534 in June, data compiled by Bloomberg show Indian stock market astrology prediction