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Strike at RBI affects money, forex trade

Trade in India's currency and money markets was badly hit on Thursday as a one-day strike by some 14,000 central bank clerks crippled activity.

A spokeswoman from the Reserve Bank of India said that clearing operations have been hit.

"The strike is total and all clerks across RBI offices in India have not reported to work according to the reports we have got," Ashit Dasgupta, secretary of the association said from Calcutta.

The strike by the All India Reserve Bank Employees Association is to protest against what it termed as the central bank management's apathy and discrimination towards its members.

The RBI, with more that 31,000 employees on its pay-roll, has termed the strike as 'illegal'.

Money market hit

Volumes were thin in the money market and quotes sporadic as players stayed out, concerned about clearing and settlement operations.

Large lending banks said they were only rolling over trades struck on Wednesday.

Volumes in government bonds market were thin and were being dealt for settlement on Friday while foreign exchange dealers said cash dollar demand was slack due to the strike.

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