Rupee closes lower against US dollar
Mumbai: The Indian rupee on Tuesday closed weaker against US dollar, ahead of the key gross domestic product (GDP) data for the December quarter.
The home currency ended at 64.89, down 0.14% from its previous close of 64.80. The local currency opened at 64.73 a dollar and touched a high and a low of 64.73 and 64.96, respectively.
Government will issue GDP data for December quarter on Wednesday after 5.30pm. GDP probably rose 7% in three months to December year-on-year, according to a Bloomberg survey, versus 6.3% in the previous quarter.
Traders are also awaiting Jerome Powell’s first public comments after taking over as US Federal Reserve chairman on Tuesday.
Powell will appear before the House Financial Services Committee Tuesday to discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy; investors will look for clues on how quickly the Fed will continue to raise interest rates, Bloomberg reported.
The currency was also pressured due to fall in the local equity markets after state-owned Punjab National Bank said that the amount of fraudulent transactions could go up by around $204 million.
India’s benchmark Sensex index fell 0.29% or 99.36 points to 34,346.39. So far this year, Sensex has risen 1.1%.
Yields on 10-year government bonds were at 7.666% compared to Monday’s close of 7.688%. Bond yields and prices move in opposite directions.
Year to date, the rupee weakened 1.1%, while foreign investors have bought $679.20 million and $1.40 billion in equity and debt markets, respectively.
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