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Home / Market / Stock-market-news /  Rupee trades lower against US dollar

Mumbai: The Indian rupee on Tuesday weakened along with emerging market currencies as the US dollar advanced on the back of higher US Treasury yields. At 2.10pm, the rupee was trading at 68.98 a dollar, down 0.26% from its previous close of 68.86. The currency opened at 68.96 a dollar and touched a low of 69.09.

Treasury yields climbed on optimism over the US economy. US gross domestic product (GDP) data will be out on Friday. According to a Bloomberg survey, US second quarter GDP probably rose 4.2% quarter on quarter, the fastest since 2014.

Fall in emerging market currencies was also after china unveiled a package of targeted policies -- from a tax cut aimed at fostering research to special bonds for infrastructure investment -- to boost domestic demand as the trade dispute threatens to slow growth.

The 10-year bond yield stood at 7.806%, from its Monday’s close of 7.81%. Bond yields and prices move in opposite directions.

Benchmark Sensex Index rose 0.38% or 138.72 points to 36,857.32. Since January, it has gained 7.82%

So far this year, the rupee has weakened 7.25%, while foreign investors have sold $951.10 million and $6.21 billion in equity and debt markets, respectively.

Asian currencies were trading lower. Indonesian rupiah was down 0.52%, China offshore 0.3%, South Korean won 0.16%, China renminbi 0.16%, Malaysian ringgit 0.15%, Taiwan dollar 0.14%, Thai baht 0.08%. However, Japanese yen was up 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.630, up 0.05% from its previous close of 94.632.

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