Rupee closes over 2-week low against US dollar after US Fed raised interest rate
Mumbai: The Indian rupee on Thursday closed over two week low against the US dollar after US federal reserve raised key interest rates.
The rupee closed at 64.54 a dollar—a level last seen on 30 May, down 0.37% from its Wednesday’s close of 64.30. The rupee opened at 64.25 a dollar and touched a high and a low of 64.24 and 64.54 respectively.
Overnight, the US Federal Reserve forged ahead with a 25 bps interest rate hike and additional plans to tighten monetary policy despite growing concerns over weak inflation.
The 10-year bond yield closed at 6.482% compared to its previous close of 6.474%. Bond yields and prices move in opposite directions.
The benchmark Sensex index fell 0.26% or 80.18 points to closed at 31,075.73. So far this year, it has risen 17%.
So far this year, the rupee has gained 5.65%, while foreign investors bought $8.43 billion and $13.25 billion in local equity and debt markets, respectively.
Asian currencies were trading lower. Singapore dollar fell 0.49%, Japanese yen 0.46%, Philippines peso 0.41%, China Offshore 0.36%, Thai Baht 0.25%, Malaysian ringgit 0.23%, China Renminbi 0.18%, Taiwan dollar 0.15%, Indonesian rupiah 0.07%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.313, up 0.39% from its previous close of 96.939.