Rupee closes at fresh 29-month high against US dollar
Mumbai: The Indian rupee on Thursday closed at a fresh 29-month high against the US dollar, tracking gains in the local equity and Asian currencies markets.
The home currency closed at 63.41 a dollar—a level last seen on 14 July 2015, up 0.20% from its Wednesday’s close of 63.54. The rupee opened at 63.58 a dollar and touched a high of 63.37.
The benchmark Sensex rose 0.52%, or 176.26 points, to 33,969.64.
Traders are cautious as the government is due to announce its first official forecast of economic growth on Friday. A Bloomberg survey predicts gross domestic product will grow 6.7% in the year through March 2018, the slowest pace since 2014 when Prime Minister Narendra Modi came to power.
Overnight, minutes of the Federal Reserve’s December meeting showed policy makers continue to back a “gradual approach” to raising interest rates. Traders are now focused on the key monthly US jobs report Friday, which is forecast to show that unemployment held at 4.1% in December, reported Bloomberg.
In the year 2017, the rupee gained 6.35% and Sensex rose 28%, while foreign institutional investors have bought $7.73 billion and $23.27 billion in equity and debt, respectively.
The 10-year bond yield ended at 7.333% compared to its previous close of 7.32%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher. Indonesian rupiah was up 0.4%, Thai Baht 0.3%, South Korean won 0.25%, Malaysian ringgit 0.2%, China renminbi 0.1%, Singapore dollar 0.07%. However, Philippines peso was down 0.13%, Taiwan dollar 0.12%, Japanese yen 0.07%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 91.977, down 0.2% from its previous close of 92.162.
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