BackRupee closes stronger against US dollar at 66.92
The rupee strengthened against the US dollar, after the Rajya Sabha passed the Constitution amendment bill for the goods and services tax
Premium
Mumbai: The Indian rupee on Thursday strengthened against the US dollar, after the Rajya Sabha passed the Constitution amendment bill for the goods and services tax (GST). Traders are cautious ahead of non-farm payrolls data on Friday.
The home currency closed at 66.92 a dollar, up 0.11% from its previous close of 66.99. The rupee opened at 66.85 a dollar and touched a high and a low of 66.85 and 66.99, respectively.
The Rajya Sabha on Wednesday passed the GST bill, setting in motion the process for rolling out the country’s single biggest tax reform. Once in place, it will, driven by the principle of one nation, one tax, economically unify the country for the first time.
“The passing of the GST will be welcome news for the INR.The likely subsequent rise in FDI inflows, a narrow current account deficit, a large carry buffer, and renewed energy on the reform front should help the INR to be a strong performer amongst Asian and other EM currencies," HSBC Global research report said.
India’s benchmark Sensex index rose 0.06%, or 16.86 points, to close at 27,714.37. So far this year, it has gained 6.11%.
So far this year, the rupee is down 1.15%, while foreign institutional investors (FIIs) have bought $4.78 billion in equity and sold $1.06 billion in debt markets.
Meanwhile, India’s 10-year bond yield closed at 7.171%, as compared with its Wednesday’s close of 7.195%.
Asian currencies closed mixed. South Korean won was up 0.31%, Thai baht 0.19%, Malaysian ringgit 0.16%, Taiwan dollar 0.12% and Hong Kong dollar 0.05%. However, Indonesian rupiah was down 0.17%, China renminbi 0.16% and Philippines peso fell 0.04%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.64, up 0.09% from its previous close of 95.563.
The Bank of England cut its key rate for the first time in more than seven years and will restart the printing presses as it ramps up defences against a Brexit-induced slump.
Officials, led by governor Mark Carney, slashed their growth forecasts by the most ever and voted unanimously to reduce the benchmark by 25 basis points to a record-low 0.25%. While saying they had scope to do more if needed, including taking the key rate close to zero, they also announced a plan to lend as much as £100 billion to banks to ensure the measures reach the real economy, Bloomberg reported.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
