Published at 07:38 (GMT) 21 May

USDINR

USD/INR extended upmove to 54.72 highs as EUR/USD pared advance into early Europe, however spot failed to gain further ground on SENSEX recovery. The index heavy-weight SBI saw the benchmark rise 0.7% as we write, with news on oil-companies payout also buoying the related stocks. In response to the Oil Ministry's request for additional budget of INR 490bn the finance ministry reportedly approved payout of INR 380.5bn for compensating state-owned oil marketing companies for selling fuel at subsidized rates and incurring heavy losses (Indian Express). In addition, state-owned upstream firms have also been asked to payout INR 534bn to the refiners to partake in the subsidy burden. On the side, bond yields inched towards 8.54% on expectations that this week's bond sale might include a new 10-year paper. RR