The rupee weakened on Monday, and was trading at 48.73 against the dollar at 12 noon, on back of a weak stock market fuelling concerns that
capital outflows to India would continue. But broad dollar weakness against major world currencies may help avert a sharp slide in the currency, delaers said. This level is off a high of 48.24 reached in early morning trade, and weaker than Friday's close of 48.44.
Dealers said they were watching the stock market for cues on fund flows. BSE sensex had fallen nearly 1.3% at 12 noon, in line with weak Asian markets and on fears of poor quarterly earnings.
But bonds were trading in a tight band on Monday as investors stayed on the sidelines in thin year-end trading, with hopes for a rate cut supporting bond prices. At 12 noon the benchmark 10-year bond yield was at 5.60%, marginally below Friday's close of 5.61%. It moved in a narrow 5.58-5.63 % band.
Liquidity was comfortable with overnight call money rates were trading at 5.10% at 1130 am, as per information on the CCIL website.
