Rupee erases early gains to close lower against US dollar
Mumbai: The Indian rupee on Monday erased all the gains and closed marginally lower against the US dollar ahead of the Reserve Bank of India's bi-monthly policy on 2 August.
The rupee closed at 64.19 a dollar, down 0.06% from its Friday’s close of 64.15. The rupee opened at 64.10 a dollar and touched a high and a low of 64.05 and 64.25 respectively. Earlier in the intraday, Rupee gained as much as 0.16%.
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 benchmark Sensex index rose 0.63% or 205.06 points to closed at 32,514.94. So far this year, it has risen over 22%.
The 10-year bond yield closed at 6.469%, compared to its previous close of 6.463%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5.5%, while foreign investors bought $9.09 billion and $17.28 billion in local equity and debt markets, respectively.
Asian currencies were trading higher after U.S. economic growth on Friday missed analysts’ forecasts, easing concern the Federal Reserve will step up the pace of interest-rate increases.
Thai Baht was up 0.31%, South Korean won 0.26%, Philippines peso 0.14%, China renminbi 0.12%, China Offshore 0.1%, Taiwan dollar 0.09%. However, Singapore dollar was down 0.04%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.414, down 0.17% from its previous close of 93.259.