On Thursday, The Indian rupee and bond prices gained after the Reserve Bank of India (RBI) announced the payment of Rs 50,000 crore dividend to the government. At 9.10 am, the rupee was trading at 68.47 a dollar, up 0.24% from its previous close of 68.63. The currency opened at 68.47 a dollar and touched a high of 68.46. The RBI wants to touch its fiscal roadmap by helping the centre. A drop in the crude oil overnight also helped to support the rally.

The 10-year bond yield stood at 7.752%, from its Wednesday’s close of 7.781%. Bond yields and prices move in opposite directions.

On Wednesday, RBI announced in its board meeting that it will pay Rs 50000 crore dividend for July-June 2018 year, 63% higher than the previous year to the government. The surplus transfer has come at a time when the government showing an improvement in the June quarter with fiscal deficit working out 69% of the budgeted estimates from 80.8% in April June quarter of the preceding fiscal.

For 2018-19, the government estimates fiscal deficit target to 3.3% of the gross domestic product. The move will help the government to fund its fiscal deficit, especially in the election year.

Benchmark Sensex Index rose 0.31% or 117.50 points to 38,005.06. Since January, it has gained 10.6%. So far this year, the rupee has lowered 6.7%, while foreign investors have sold $394 million and $5.51 billion in equity and debt markets, respectively.

Meanwhile, traders were alert due to the escalation of the trade war between the world’s two largest economies.  At Wednesday, China said, it will impose 25% tariffs on an extra $16 billion of imports from the U.S. from 23 August 2018, matching Washington’s latest move in the trade war.

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