Rupee closes at one-week high against US dollar

The rupee closes at 68.39 a dollar —a level last seen on 22 November, up 0.39% from its previous close of 68.66


The rupee opened at 68.68 against the US dollar and touched a high of 68.45 a dollar during intraday trading. Photo: Mint
The rupee opened at 68.68 against the US dollar and touched a high of 68.45 a dollar during intraday trading. Photo: Mint

Mumbai: The Indian rupee on Wednesday closed at a one week high against the US dollar after domestic equity markets gained for the fourth consecutive session. This was the second consecutive sessions when the rupee closed higher.

The rupee closed at 68.39 a dollar—a level last seen on 22 November, up 0.39% from its previous close of 68.66. The home currency opened at 68.68 against the US dollar and touched a high of 68.37 a dollar during intraday trading. So far this year, it has fallen 3.27%.

In last four sessions, Sensex gained 3.1% or 793 points. On Wednesday, India’s benchmark Sensex index closed at 26,652.81 points—up 0.98% or 258.80 points from its previous close. So far this year, it has risen 2.05%.

Traders are cautious ahead of the key gross domestic product data after 5.30pm. According to Bloomberg estimates, GDP will be 7.6% for the September quarter from 7.1% in June quarter. Traders are also cautious ahead of the US payroll data on Friday, Italian referendum scheduled for Sunday and mid-December US Federal Reserve policy.

The benchmark 10-year government bond yield closed at 6.247%, compared to Tuesday’s close of 6.319%. Bond yields and prices move in opposite directions.

India’s fiscal deficit during the seven months to October was Rs4.24 trillion, or 79.3% of the budgeted target for the fiscal year ending in March 2017. The fiscal deficit was 74.0% of the full-year target during the same period a year ago, according to Reuters reported.

So far this year, FIIs have bought $4.21 billion in equities and sold $3.74 billion in debt.

Most Asian currencies closed higher after Iraqi Oil Minister Jabbar al-Luaibi said OPEC ministers were unanimous in favour of an output cut. Iran Oil Minister Bijan Namdar Zanganeh said Russia, the largest non-OPEC producer, was ready to abandon its previous position and participate in curbing production, Bloomberg reported

China renminbi was up 0.32%, Philippines peso 0.22%, China Offshore 0.2%, Thai Baht 0.1%, Indonesian rupiah 0.05%. However, Japanese yen was down 0.65%, Taiwan dollar 0.15%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.01, up 0.08% from its previous close of 100.93.

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