Rupee closes higher against US dollar
Mumbai: The Indian rupee on Wednesday strengthened against the US dollar, tracking gains in Asian currencies market.
The home currency closed at 65.21 against the dollar, up 0.32% from its Tuesday’s close of 65.42. The rupee opened at 65.41 a dollar and touched a high and a low of 65.29 and 65.43, respectively.
Traders are cautious ahead of US consumer price inflation data due later in the day before the Federal Open Market Committee begins its two-day meeting on 14 December. The Fed is widely expected to raise interest rates again, with the market pricing in a more than 80% probability of a December hike.
Data released by the commerce ministry on Tuesday showed exports fell 1.1% in October to $23.1 billion, while imports expanded at the slowest pace in 10 months at 7.6% to $37.1 billion. India’s trade deficit in the month was $14 billion.
The 10-year bond yield closed at 7.017% compared to its previous close of 7.052%. Bond yields and prices move in opposite directions.
The benchmark Sensex index fell 0.55% or 181.43 points to 32,760.44 points. So far this year, it has gained 24%.
So far this year, the rupee has gained 4%, while foreign institutional investors have bought $7.28 billion and $22.34 billion in equity and debt, respectively.
Asian currencies were trading higher. Japanese yen was up 0.57%, Philippines peso 0.52%, South Korean won 0.51%, Malaysian ringgit 0.28%, China renminbi 0.15%, Singapore dollar 0.13%, Taiwan dollar 0.09%, China offshore 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.845, up 0.02% from its previous close of 93.827.