Gyroscopic Investing

Speculation in the currency market is that the Reserve Bank of India (RBI) may issue government gold bonds to attract dollar inflows and stabilize the rupee which is in danger of slipping to a record low.

Earlier in the day, the RBI tightened rules for exporters, asking them to convert 50% of their dollar holdings into rupee and to access the forex market only after using up their existing balance.

"There is strong talk that RBI may issue sovereign gold bonds with interest rate in the range of 7-8%," a market participant with a private sector bank told Moneycontrol.com on condition of anonymity.