Rupee closes weaker against US dollar
Mumbai: The Indian rupee on Wednesday ended weaker against the US dollar, tracking losses in the local equity and Asian currencies market after the US and North Korea exchanged threats amid escalating tensions between the two nations.
The rupee closed at 63.84 a dollar, down 0.32% from its Tuesday’s close of 63.81. The rupee opened at 63.78 a dollar and touched a high and a low of 63.72 and 63.85 respectively.
The benchmark Sensex index fell 0.68% or 216.35 points to closed at 31,797.84. So far this year, it has risen over 19.5%.
Asian currencies were trading lower after US President Donald Trump said North Korea will be “met with fire and fury” if Kim Jong Un’s regime keeps making threats.
Traders are focusing on US inflation data due Friday given its potential impact on Fed monetary policy.
South Korean won was down 0.88%, Philippines peso 0.23%, Taiwan dollar 0.2%, Indonesian rupiah 0.16%, Malaysian ringgit 0.1%. However, Japanese yen was up 0.53%, China renminbi 0.39%, Hong Kong dollar 0.12%.
The 10-year bond yield closed at 6.466%, compared to its previous close of 6.458%. Bond yields and prices move in opposite directions.
So far this year, the rupee gained 6.3% while foreign institutional investors (FIIs) bought $8.69 billion and $18.68 billion in equity and debt markets, respectively.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.612, down 0.04% from its previous close of 93.647.
Bloomberg contributed this story