Mumbai: The Indian rupee was trading little changed against the US dollar ahead of Reserve Bank of India’s bi-monthly policy review meeting. At 9.15am, the rupee was trading at 70.44 a dollar, up 0.02% from its Monday’s close of 70.46. The currency opened at 70.51 a dollar. The 10-year government bond yield stood at 7.615% from its previous close of 7.626%. Bond yields and prices move in opposite directions.

Traders are cautious ahead of RBI’s monetary policy decision on Wednesday after 2.30pm. Analysts believe the outcome may be a non-event on the key rate front, but the focus will be on RBI’s communication and stance.

The benchmark Sensex Index rose 0.3% or 108.99 points to 36,349.99 points. Year to date, it has gained 6.41%.

So far this year, the rupee has declined 9.33%, while foreign investors have sold $4.89 billion and $7.57 billion in the equity and debt markets, respectively.

Asian currencies were trading higher on continued dollar weakness even amid signs it will be difficult for the U.S. and China to resolve their trade war.

China renminbi was up 0.33%, Japanese yen 0.31%, China Offshore 0.24%, Thai Baht 0.22%, Singapore dollar 0.15%, Taiwan dollar 0.14%, Hong Kong dollar 0.08%, South Korean won 0.05%. However, Philippines peso was down 0.48%, Indonesian rupiah 0.32%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.816, down 0.23% from its previous close of 97.04.

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