Rupee closes marginally weaker against US dollar
Mumbai: The Indian rupee on Tuesday erased all the gains and closed marginally weaker against the US dollar ahead of the key consumer price inflation and industrial production data on July 12.
The rupee closed at 64.59 a dollar, down 0.09% from its Monday’s close of 64.53. The rupee opened at 64.46 a dollar and touched a high of 64.45—a level last seen on 29 June.
The government will issue industrial production and consumer price inflation data for May and June respectively
According to DBS Bank report, inflation to slip 1.6% from 2.2% in May. “Food inflation might slip deeper into deflation on YoY terms on base effects, but a modest rise is likely in sequential terms. Monsoon has been slightly above normal, but flooding conditions in some parts of the country has lifted costs of perishables (particularly vegetables)”, the DBS Bank report added.
The 10-year bond yield ended at 6.485%, compared to its previous close of 6.474%. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.10% or 31.45 points to closed at 31,747.09. So far this year, it has risen 19.11%.
So far this year, the rupee has gained 5.25%, while foreign investors bought $8.24 billion and $14.47 billion in local equity and debt markets, respectively.
Asian currencies were trading mixed. Philippines peso was up 0.14%, Indonesian rupiah and Singapore dollar were up 0.06%. However, Japanese yen was down 0.25%, South Korean won 0.15%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.111, up 0.09% from its previous close of 96.022.
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