Rupee closes over one-month high against US dollar
The rupee closed at 63.79 a dollar — a level last seen on 8 August, up 0.41% from its Thursday’s close of 64.05
Mumbai: The rupee on Friday closed over one-month high tracking gains in its Asian peers after dollar weakened to fresh two and half year low.
Dollar fell on the worries over the US economic fallout from Hurricane Irma and after European Central Bank chief Mario Draghi failed to jawbone the euro lower at Thursday’s policy meeting, Bloomberg reported.
Gains in the local currency was also due to continued buying of Indian debt by the foreign institutional investors. Year to date, FII’s bought nearly $20 billion in debt.
The rupee closed at 63.79 a dollar — a level last seen on 8 August, up 0.41% from its Thursday’s close of 64.05. The rupee opened at 63.84 a dollar.
Among the Asian currencies, Indonesian rupiah was up 0.93%, Japanese yen 0.92%, China renminbi 0.4%, Malaysian ringgit 0.36%, China Offshore 0.21%, South Korean won 0.20%, Singapore dollar 0.19%, Philippines peso 0.09%.
Bond yield gained for the fifth consecutive sessions and closed near two week high on the worries of tensions between US and North Korea.
The 10-year bond yield closed at 6.543% — a level last seen on 28 August, compared to its previous close of 6.515%. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.08% or 24.78 points to closed at 31,687.52. So far this year, it has risen over 19%.
So far this year, the rupee has gained 6.5%, while foreign institutional investors bought $6.68 billion in equity.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 91.148, down 0.56% from its previous close of 91.66.
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