Mumbai: The Indian rupee on Thursday strengthened against the US dollar after local equity markets gained for the third consecutive session. Traders are also awaiting key macroeconomic data due after 5.30pm.
Firm Asian currencies due to weak dollar also supported the home currency after US president-elect Donald Trump gave few details on his economic policy at the first press conference since his election victory.
The home currency closed at 68.08 a dollar, up 0.36%, from Wednesday’s close of 68.33. Rupee opened at 68.14 and touched a high 67.95 a dollar. So far this year, it has fallen 0.1%.
India’s benchmark Sensex index closed at 27,247.16 points, up 0.39% or 106.75 from its previous close. So far this year, it has gained 2.3%.
The 10-year bond yield hit over a one-month low ahead of the Consumer Price Inflation (CPI) data for the month of December. According to a Bloomberg analyst, CPI will be at 3.5% against 3.63% a month ago.
The 10-year bond yield closed at 6.373%, a level last seen on 6 December, compared to Wednesday’s close of 6.394%. Bond yields and prices move in opposite directions.
The government will also issue Index of Industrial Production (IIP) data for November. According to Bloomberg analyst estimates, IIP will be at -2.2% against -1.9% a month ago. The government will also release Wholesale Price Index (WPI) inflation data on 16 January.
So far this year, foreign institutional investors sold $459.20 million in equity and $22.2 million in debt.
Japanese yen was up 1%, South Korean won 0.97%, Taiwan dollar 0.85%, China renminbi 0.55%, China offshore 0.5%, Malaysian ringgit 0.3%, Indonesian rupiah 0.29%, Thai baht 0.27%, Philippines peso 0.19%, Singapore dollar 0.13%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.03, down 0.76% from its previous close of 101.78.