Indian rupee closes fresh nine month low against dollar on market volatility

Indian rupee closed at 68.26 a dollar—a level last seen on 29 February, down 0.13% from its previous close of 68.17


At 2pm, the rupee was trading at 68.23 a dollar, down 0.08% from its previous close of 68.17. Photo: Pradeep Gaur/Mint
At 2pm, the rupee was trading at 68.23 a dollar, down 0.08% from its previous close of 68.17. Photo: Pradeep Gaur/Mint

Mumbai: The Indian rupee on Tuesday closed fresh nine month low against the US dollar on market volatility. This was the seven out of eight sessions when the rupee closed lower.

The rupee closed at 68.26 a dollar—a level last seen on 29 February, down 0.13% from its previous close of 68.17. The home currency opened at 68.11 against the US dollar and touched a low of 68.27 a dollar—a level last seen on 1 March. So far this year, it fell 2%.

India’s benchmark Sensex index closed at 25,960.78 points, up 0.76% or 195.64 points from its previous close. So far this year, it has fell 1%.

Since 9 to 18 September, FIIs sold $1.52 billion in equity and from 11 to 18 September, FIIs sold $2.06 billion in debt. FIIs have sold $2.34 billion in debt and bought $5.30 billion in equity till date this year.

The benchmark 10-year government bond yield closed at 6.31%, compared to Monday’s close of 6.311%. Bond yields and prices move in opposite directions.

South Korea’s won outperforms in Asia as rally in local stocks help reverse three days of losses. Early yen gains on earthquake in Fukushima proved short-lived as US yields recovered. Most Asian currencies are mixed to lower, according to Bloomberg report.

South Korean won was up 0.89%, Taiwan dollar 0.25%, Thai Baht 0.25%, China renminbi 0.1%. However, Indonesian rupiah was down 0.28%, Philippines peso 0.12%, China Offshore 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.84, down 0.2% from its previous close of 101.05.

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