Rupee slips to 59.46 after positive start.

The Indian rupee weakened after a positive start on Monday signalling the many steps the central bank and the government have taken to stem the slide in the currency have failed to create a decisive impact on the currency.

The partially convertible rupee traded at 59.46 as of 09.10 a.m. against Friday's close at 59.35. It had pulled back to 59.31 in early trades. The central bank will sell Rs. 23,660 crore worth of government debt limit to overseas investors on Monday. If successful, the inflows may provide short term support to the currency.

The rupee gained 0.3 per cent last week, marking its second consecutive weekly gain, even as traders said the Reserve Bank of India's measures to raise short-term interest rates to support the rupee unveiled late on Monday have not yet had a meaningful impact.

Concerns have risen about the success of the steps after the government cancelled a treasury bill sale and the central bank had to reject most bids at a special bond sale as investors demanded higher yields.

Bond yields had posted their worst week in four-and-a-half years with yields rising 40 basis points, roiled by the RBI's steps.

Source : profit.ndtv.com