Rupee closes lower against US dollar
Mumbai: The Indian rupee on Wednesday closed marginally lower against the US dollar tracking losses in the local equity and Asian currencies markets.
The home currency closed at 66.70, down 0.04% from its previous close of 66.67. The rupee opened at 66.63 a dollar and touched a high and a low of 66.62 and 66.78, respectively.
The benchmark Sensex index fell 0.34% or 97.62 points to closed at 28,901.94. So far this year, it has risen 8.5%.
Asian currencies were trading lower. Thai Baht was down 0.41%, China Offshore 0.32%, Singapore dollar 0.24%, Malaysian ringgit 0.16%, China renminbi 0.11%, Japanese yen 0.1%, Philippines peso 0.06%. However, South Korean won was up 0.06%.
Traders are focusing on exit polls of the upcoming state elections on 9 March and final results on 11 March.
The government will issue Index of Industrial Production (IIP) data for the month of January on 10 March and Consumer Price Inflation data for February on 13 March. Wholesale Price Inflation data for February will be out on 14 March.
The markets are also gearing up for an interest rate hike by the US Federal Reserve in its two-day meeting on 14-15 March. Traders are also cautious ahead of the European Central Bank (ECB) meeting and US employment data on Thursday and Friday, respectively.
The 10-year bond yield closed at 6.859% compared to its Tuesday ’s close of 6.834%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 1.9%, while foreign institutional investors (FIIs) have bought $1.89 billion and $509.30 million from local equity and debt markets, respectively.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.93, down 0.12% from its Monday’s close of 101.81.