Indian rupee closes marginally stronger against US dollar
Mumbai: The Indian rupee on Tuesday closed stronger against the US dollar tracking gains in the local equity markets and fall in international prices of crude oil.
The rupee closed at 68.66 a dollar, up 0.17% from its previous close of 68.78. The home currency opened at 68.74 against the US dollar and touched a high and a low of 68.62 and 68.76 respectively. So far this year, it has fallen 3.7%.
India’s benchmark Sensex index closed at 26,394.01 points, up 0.17% or 43.84 points from its previous close. So far this year, it has rose 1.06%.
Traders are cautious ahead of the key gross domestic product (GDP) data, which will be released on 30 November. Bloomberg estimates, GDP will be 7.6% for the September quarter from 7.1% in June quarter. Traders are also cautious ahead of the US payroll data on Friday, Italian referendum scheduled for 4 December and mid-December US Federal Reserve policy.
The benchmark 10-year government bond yield closed at 6.325%, compared to Monday’s close of 6.327%. Bond yields and prices move in opposite directions.
So far this year, FIIs have bought $4.3 billion in equities and sold $3.09 billion in debt.
Asian currencies were trading weaker. Japanese yen was down 0.58%, Thai Baht 0.44%, Taiwan dollar 0.26%, Singapore dollar 0.23%, Indonesian rupiah 0.21%, Malaysian ringgit 0.05%. However, China renminbi was up 0.29%, South Korean won 0.13%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.26, down 0.05% from its previous close of 101.33.
Oil prices fell on Tuesday on signs that leading oil exporters were struggling to agree a deal to cut production to reduce global oversupply. The Organization of the Petroleum Exporting Countries will meet in Vienna on Wednesday aiming to implement an agreement outlined in September to cut output by around 1 million barrels per day (bpd), from around 33.82 million bpd in October, Reuters reported.