Rupee closes at fresh 11-week high against US dollar
Mumbai: The Indian rupee on Wednesday closed fresh 11-week high against the US dollar ahead of the Reserve Bank of India’s (RBI) bi-monthly policy on 2 August.
The rupee closed at 64.08 a dollar—a level last seen on 16 May, up 0.17% from its Monday’s close of 64.19. The rupee opened at 64.11 a dollar and touched a high of 64.05—a level last seen on 17 May.
Of the 15 economists surveyed by Mint, 11 expect the central bank to cut the repo rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points.
The Nikkei India Manufacturing Purchasing Managers’ Index was at 47.9 in July, lowest since February 2009 as the roll out of a new nationwide sales tax disrupted supply chains across the country, Bloomberg reported.
The benchmark Sensex index rose 0.19% or 60.23 points to closed at 32,575.17. So far this year, it has risen over 22%.
The 10-year bond yield closed at 6.442%, compared to its previous close of 6.469%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 6%, while foreign investors bought $9.09 billion and $17.44 billion in local equity and debt markets, respectively.
Asian currencies were trading mixed. Philippines peso was up 0.16%, China renminbi 0.1%, Thai Baht 0.06%, China Offshore 0.06%. However, Singapore dollar was down 0.18%, South Korean won 0.17%, Japanese yen 0.15%, Malaysian ringgit 0.11%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.95, up 0.09% from its previous close of 92.863.