Rupee closes at two-month high against US dollar
Mumbai: Indian rupee on Tuesday closed two-month high against US dollar tracking gains in Asian currencies markets.
The home currency closed at 64.41 a dollar—a level last seen on 20 September, up 0.14% from its Friday’s close of 64.50. The rupee opened at 64.49 a dollar and touched a high of 64.36.
Traders are cautious ahead of the gross domestic product (GDP) data for the second quarter due on 30 November. According to Bloomberg analysts’ estimates, gross value added (GVA) will be at 6.3% from 5.6% a quarter ago, while GDP will be at 6.5% from 5.7% last quarter.
The benchmark Sensex fell 0.31%, or 105.85 points, to 33,618.59. So far this year, it has gained 26%.
Bond yield fell marginally after hitting 15-month high earlier in the day. The 10-year bond yield ended at 7.03%, compared to its previous close of 7.056%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5.3%, while foreign institutional investors have bought $8.34 billion and $22.66 billion in equity and debt, respectively.
Asian currencies were trading higher. South Korean won was up 0.4%, Malaysian ringgit 0.24%, Singapore dollar 0.1%, Thai baht 0.07%, China renminbi 0.07%, Philippines peso 0.07%. However, Japanese yen was down 0.12%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.924, up 0.02%, from its previous close of 92.904.
Trump’s pick to lead the US Federal Reserve, Jerome Powell, reiterated expectation that interest rates will rise “somewhat further” as balance sheet gradually shrinks, also said “we must be prepared to respond decisively and with appropriate force to new and unexpected threats” to financial stability and economy, Bloomberg reported.
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