Rupee closes lower at 61.84 on dollar demand from state-owned banks
The home currency closed down 0.14% from previous close of 61.76, after touching a low of 61.93 amid dollar demand from state-owned banks
Mumbai: The rupee ended lower against the US dollar as state-owned banks continued to absorb foreign fund inflows, likely on behalf of the Reserve Bank of India (RBI).
The home currency closed at 61.84, down 0.14% from previous close of 61.76, it had touched a low of 61.93 earlier in the day amid dollar demand from state-owned banks.
“State-owned banks have been buying dollars all through this week. If not for them, the rupee would have strengthened," said a dealer with a US bank.
Foreign institutional investors (FIIs) have invested a huge $3.47 billion in the local equity and $5.35 billion from bond market, and it is such investments that state-owned banks must have absorbed in the foreign exchange market on Friday.
The Sensex rose 1.65% or 473.47 points to close at 29,220.12 points as shares were bought on optimism that the Union budget to be released on Saturday will be reform oriented and encourage foreign investment into India.
The yield on India’s 10-year benchmark bond closed at 7.72% compared with its Thursday’s close of 7.73%. Bond yields and prices move in opposite directions.
The dollar index, which measures the US currency’s strength against major currencies, trading at 94.996, down 0.31% from the previous close of 95.292.
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