BackRupee drops 10 paise against dollar
In the afternoon trade, the local currency had strengthened to 60.41 a dollar on strong equity market related flow
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Mumbai: The Indian rupee erased its afternoon gains to close lower, tracing losses in the stock market after the Supreme Court termed as illegal the allocation of all coal blocks between 1993 and 2010.
The rupee ended at 60.57 a dollar, down 0.15% from its previous close of 60.47. In the afternoon trade, the local currency had strengthened to 60.41 a dollar on strong equity market related flow.
The Reserve Bank of India (RBI) was also seen buying dollars from the market in the afternoon, said currency dealers.
India’s benchmark equity index Sensex ended at 26,437.02 points on the BSE, up 0.07%. Earlier in the day, Sensex had gained 0.8%, or 211.19 points, to register a record high of 26,630.74 points, while the Nifty advanced 0.7% or 55.05 points to log an all-time high of 7,968.25 points.
Asian currencies ended lower. Indonesian rupiah fell 0.35%, South Korean won 0.24%, Thai baht 0.14%, Singapore dollar 0.06%, Malaysian ringgit 0.06% and Taiwan dollar 0.03% down against the dollar.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 82.508, up 0.21% from the previous close of 82.336.
Since the beginning of 2014, the rupee has gained 2.04%, while foreign institutional investors have bought $12.64 billion during the period from local equity markets.
The yield on India’s 10-year benchmark bond ended at 8.559%, compared with Friday’s close of 8.515%. Bond yields and prices move in opposite directions.
The government will issue gross domestic product data for the June quarter on 29 August. Analysts expect GDP the first quarter GDP to be at 5.5%, up from 4.6% in the March quarter. The fiscal deficit data will be released on 28 August.
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