BackRupee recoups intraday losses, closes little changed against US dollar at 67.92
The Indian rupee recouped its intraday losses to close little changed against the US dollar, after a choppy trading session, on dollar selling by some public sector banks
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Mumbai: The Indian rupee recouped its intraday losses to close little changed against the US dollar, after a choppy trading session, on dollar selling by some public sector banks.
The home currency closed at 67.92, up 0.04% from its previous close of 67.97. The local currency opened at 68.07 a dollar and touched a high and a low of 67.81 and 68.07, respectively.
The currency was weak for most part of the session as concerns that Britain’s move to leave the European Union would adversely impact emerging market economies owing to a hit to sentiment. So far this year, the rupee has weakened 2.64%. Foreign institutional investors (FIIs) have bought $2.84 billion in equity and sold $1.84 billion in debt markets.
Public sector banks were seen selling dollars around 68 per dollar level, which sparked talks that this could be at the behest of the Reserve Bank of India.
India’s benchmark Sensex rose 0.02%, or 5.25 points, to 26,402.96. So far this year, the Sensex has gained 1.09%.
Meanwhile, India’s 10-year bond yield closed at 7.458%, compared with Friday’s close of 7.476%.
Asian currencies closed lower, tracking the fall in European markets. China offshore was down 0.64%, Philippines peso 0.62%, Singapore dollar 0.45%, China renminbi 0.42%, Taiwan dollar 0.31%, South Korean won 0.27% and Malaysian ringgit declined 0.16%. However, Japanese yen was up 0.53%, Indonesian rupiah was up 0.3%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.384, up 1% from its previous close of 95.448.
European stocks and currencies extended its losses after Britain on Friday surprised markets by voting to leave the European Union. UK’s FTSE100 index fell 1.6%, French index CAC 40 fell 1.9%, while German index DAX shed 2%.
The pound was the worst performing currency among major currencies, falling to $1.3235 after Friday’s 8.1% plunge. The euro weakened 0.8% versus the greenback, after sliding 2.4% in the past session.
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