Rupee closes 17 paise lower against US dollar at 66.81
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Mumbai: The Indian rupee on Monday trimmed its morning losses but still closed lower against the US dollar, as Chinese stocks fell. Traders are cautious ahead of Index of Industrial Production (IIP) for the month of November and Consumer Price Index (CPI)-based inflation data for December.
The rupee closed at 66.81 a dollar, down 0.26% from its previous close of 66.64. The local currency opened at 66.92 a dollar and touched a low of 66.93. The rupee has fallen 6.46% during this fiscal year.
The government will issue IIP and CPI data on 12 January after 5.30pm. According to Bloomberg estimates, CPI will be at 5.5% for December from 5.41% last month and IIP will be at 2% for November from 9.8% a month ago.
India’s benchmark equity index, BSE Sensex, closed at 24,825.04 points, down 0.44%, or 109.29 points. Since 1 January, the Sensex is down 5%, or 1,200 points.
The Shanghai Composite Index slid 5.33% to 3,016.70 points. The Hang Seng China Enterprises Index tumbled 2.8% while the Hang Seng index fell below 20,000 for the first time since 2013.
China reported a record 46th monthly decline in producer prices on Saturday and the nation’s CPI inflation remained at about half the government’s 2015 target, leaving policy makers more room to add to their record stimulus and boost flagging growth, Bloomberg reported.
Asian currencies closed higher. China offshore spot was up 1.2%, Singapore dollar 0.53%, Indonesian rupiah 0.44%, China renminbi 0.34% Malaysian ringgit 0.15%, Thai baht 0.1% and Philippines peso and Hong Kong dollar were up 0.07% each.
Since 1 April, the Sensex is down 11.2%, while foreign institutional investors have sold $3.07 billion from local equity markets and bought $999.35 million from the debt market.
Meanwhile, the yield on India’s current 10-year benchmark bond closed at 7.754% compared with its Friday’s close of 7.744%. Bond yields and prices move in opposite directions.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.491, down 0.05% from its previous close of 98.54.