Rupee ends weak at 90.19 against the dollar, bond yields rise

Mumbai: The Indian rupee closed modestly weak on Tuesday, at 90.19 against the dollar, marginally weaker than the 90.16 on. The currency and benchmark bonds came under pressure after Bloomberg Index Services said it wouldn't include Indian bonds in its global aggregate gauge just yet.

The RBI, traders said, defended the rupee from falling past the 90.30 level. The currency traded in a narrow, 10-paisa range of 90.20 to 90.30 on Tuesday. "The main reasons for the fall was the imposition of a 25% tariff by the US on countries dealing with Iran. The buy/sell swap was also a reason for the fall in rupee as more rupees are introduced into the system," said Anil Bhansali, head of treasury, Finrex Treasury Advisors. Yields on the 10-year benchmark bonds closed at 6.63%. The yield almost shot up 10 bps at about 10 am after Indian bonds failed to be included in Bloomberg's Global Aggregate Index.