Rupee closes marginally higher against US dollar
Mumbai: The Indian closed marginally stronger against US dollar on Wednesday, tracking gains in Asian currencies market.
The rupee closed at 64.89, up 0.10% from its previous close of 65.11. The home currency opened at 64.88 and touched a high and a low of 64.87 and 65.01 a dollar respectively.
The local markets were under pressured after many bank chief ‘s summoned by the Serious Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) seeking explanation on loans given to companies linked to Nirav Modi and his uncle Mehul Choksi.
India’s benchmark Sensex index fell 0.85%, or 284.11 points, to 33,033.09. So far this year, Sensex has fallen 2.4%.
Traders will also monitor the ongoing risk-off sentiment in global markets following the resignation of US economic adviser Gary Cohn amid dispute over trade tariffs.
Bond yield fell nearly 10 basis points after Bloomberg reported that the government has met with Fitch officials and sought upgrade in its meeting. “India has strong macroeconomic fundamentals and its debt dynamics are “much more favorable,” the report added.
Yields on 10-year government bonds fell at 7.679% compared to Tuesday’s close of 7.779%. Bond yields and prices move in opposite directions.
Year to date, the rupee weakened 1.57%, while foreign investors have bought $119.90 million and $915.70 million in equity and debt markets, respectively.
Asian currencies were trading higher. South Korean won was up 0.65%, Japanese yen 0.53%, Taiwan dollar 0.21%, Singapore dollar 0.14%, Indonesian rupiah 0.12%, Philippines peso 0.05%. However, China Offshore declined 0.12% and China renminbi fell 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 89.473, down 0.16% from its previous close of 89.618.
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