Rupee weakens past 70/dollar as India’s GDP growth slows
The rupee closed at 70.02 a dollar, down 1.24% from its previous close of 69.58. The currency had opened at 69.87 a dollar, touching a high 69.86 and a low 70.46
Mumbai: The Indian rupee weakened against the US dollar on Monday as the Indian economy grew at a much slower pace than economists expected last quarter.
The rupee closed at 70.02 a dollar, down 1.24% from its previous close of 69.58. The currency had opened at 69.87 a dollar, touching a high 69.86 and a low 70.46.
After recording a growth of 8% in the June quarter, India’s GDP growth eased to 7.1% in the three months ended 31 September—lower than almost all the estimates in a Bloomberg survey as rate hiked in June and August put a brake on the world’s fastest-expanding economy.
The 10-year bond yield stood at 7.626%, from its Friday’s close of 7.607%. Bond yields and prices move in opposite directions.
The benchmark Sensex Index rose 0.13%, or 46.70 points, to close at 36,241 points. Since January, it has gained 6.41%.
So far this year, the rupee has weakened 9.35%—the worst performer among Asian currencies. while foreign investors have sold $ 4.95 billion and $ 10.2 billion in equity and debt markets, respectively.
Asian currencies were trading higher. China renminbi gained 1.016%, South Korean Won 0.920%, China offshore 0.823%, Malaysian ringgit 0.456%, Thai Baht 0.430%, Indonesian rupiah 0.407%, Singapore dollar 0.344%, Taiwan dollar 0.332%, Philippine peso 0.252% and Hong Kong dollar 0.051%. However, Japanese yen lost 0.018%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.140, down 0.14% from its previous close of 97.272.
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