Rupee closes at fresh two-year high against US dollar
Mumbai: The Indian rupee closed fresh two year high against the US dollar before the US payrolls data due later on Friday.
According to a Bloomberg report, payroll data may provide the next inflection point, as traders look for clues on the strength of the world’s largest economy and the US Federal Reserve’s next policy move.
The rupee ended at 63.58 a dollar -- a level last seen on 21 July 2015, up 0.17% from its Thursday’s close of 63.69. The rupee opened at 63.67 a dollar and touched a high and a low of 63.58 and 63.73 respectively.
On weekly basis, rupee rose nearly 1%, its biggest weekly jump since March 2017. Gains in the rupee was also supported by continued inflows by the foreign institutional investors in the local equity and bond markets on the political and economic stability and on the hopes of more reforms by the government.
So far this year, the rupee has gained 6.8%, while foreign institutional investors (FIIs) bought $8.85 billion and $18.25 billion in equity and debt markets, respectively.
The benchmark Sensex index rose 0.27% or 87.53 points to closed at 32,325.41. So far this year, it has risen over 21%.
The 10-year bond yield closed at 6.441%, compared to its previous close of 6.43%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher. South Korean won was up 0.3%, Philippines peso 0.18%, Taiwan dollar 0.14%, China offshore 0.1%, Singapore dollar 0.06% and Thai baht 0.05%. However, Japanese yen was down 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.807, down 0.03% from its previous close of 92.839.
Dollar weakened after special counsel Robert Mueller was said to have impanelled a grand jury to investigate Russia’s interference in last year’s presidential election, according to Bloomberg.