Rupee closes marginally weaker against US dollar
Mumbai: The Indian rupee closed marginally weaker against the US dollar before the federal reserve minutes from its June meeting due later on Wednesday.
The rupee closed at 64.78 a dollar, down 0.08% from its Tuesday’s close of 64.74. The rupee opened at 64.72 a dollar and touched a high and a low of 64.67 and 64.87 respectively.
Traders will focus on US durable goods and factory orders data before the release of the minutes of the Federal Reserve’s June meeting.
While traders will keep an eye on any signs regarding the timing of balance sheet reduction, as that may delay the timing of the next rate hike, they will also look for clues on whether an increased number of policy makers were concerned over poor inflation growth, Bloomberg reported
The 10-year bond yield closed at 6.551%, compared to its previous close of 6.549%. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.11% or 35.77 points to closed at 31,245.56. So far this year, it has risen 17.26%.
So far this year, the rupee has gained 5%, while foreign investors bought $8.37 billion and $14.39 billion in local equity and debt markets, respectively.
Asian currencies were trading mixed. China Offshore spot was u p0.08%, Malaysian ringgit 0.05%, Indonesian rupiah 0.04%. However, Philippines peso was down 0.26%, Japanese yen 0.26%, Thai Baht 0.04%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.259, up 0.04% from its previous close of 96.218.