MUMBAI, Jan 29 (Reuters) - Indian swap rates fell while the
rupee strengthened after the central bank cut interest rates by
25 basis points as expected, while also delivering a surprise
cut in the cash reserve ratio.
The 1-year overnight index swap (OIS) rate,
which is also sensitive to liquidity conditions, fell 5 basis
points (bps) to 7.54 percent from levels before the decision.
The 5-year OIS rate fell 3 bps to 7.14 percent,
according to traders.
The Indian rupee strengthened to 53.79 from around
53.84 before the decision, while the NSE's banking sub-index
was up 0.3 percent.
The 10-year bond yield was down 1 bp as the
cut in the cash reserve ratio reduced the prospects of bond
purchases via open market operations.
(Reporting by Mumbai markets team; Editing by Anand Basu)