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Rupee Opens Lower At 71.78

Roshni Agarwal

Rupee resumed trade on Monday at a weaker note, with a drop of 5 paise at 71.78versus the previous close of 71.73 per US dollar.

In the bond market, yield on 10-year benchmark bonds stood at 6.467%.

On Friday, GDP number for the September ended quarter came in line with the expectations at 4.5%, which is at a 6-year low. Various steps such as the restructuring in the income tax structure are suggested to revive the pace of economic growth. However, some of the analyst see the growth to pick up pace in next 2-3 quarters.

The direction of the rupee will further be governed by the rate cut i.e. likely to be made for the sixth consecutive time in RBI's December 5 credit policy meet.

Oil prices on Monday were up more than 1% as an increase in manufacturing activity in China hinted at an increase in its demand.

Benchmark indices are unlikely to be affected majorly from the dismal GDP number as the gloomy figure was already discounted.

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