>Currency Weekly Highlights (ANAGRAM)

● At scheduled auction of 120 billion rupees, RBI rejected all bids of government bonds without giving any reasons for the move.

● Rising yields increase govt's borrowing costs which have become a major concern. It has risen 62 basis points this week and more than 100 basis points this month. However, Indian federal bond yields tumbled after the central bank rejected all bids at the 120 billion rupees federal debt auction. It had earlier risen to as high as 7.37 percent a level last seen on Nov.20.

● The index of Industrial Production for the month of January fell by 0.5% (y-o-y) which was lower than market expectations for a decline of around 0.9%. The mining, Manufacturing and Electricity segments noted a decline of 0.4%, a decline of 0.8% and growth of 1.8% respectively. The decline for month of December was revised lower to 0.6% from 2.0% estimated earlier.

● The inflation based on Wholesale Price Index for week ended 28 February 2009 was seen at 2.43%, sharply lower than 3.03% noted previous week.

● Central bank has extended the deadline for companies to buy back their foreign currency convertible bonds to Dec.31 from March 31.

● The MCSI Asia-Pacific Index of shares climbed 3.7 percent in the week, halting four weeks of losses.

To see full report: CURRENCY HIGHLIGHTS