Rupee closes higher against US dollar ahead of key CPI, IIP data
Mumbai: The Indian rupee closed marginally higher against US dollar ahead of key macro economic data due on Friday after 5.30pm.
The home currency ended at 63.64 a dollar, up 0.04% from its Thursday’s close of 63.67. The rupee opened at 63.67 a dollar and touched a high and a low of 63.48 and 63.72 respectively.
The benchmark Sensex rose 0.26%, or 88.90 points, to 34,592.39. So far 2018, it gained 1.5%.
Traders are cautious ahead of the key consumer price inflation (CPI) and index of industrial production (IIP) data due later today after 5.30pm. According to Bloomberg analysts’ estimates, IIP will be at 4% in November from 2.2% a month ago, while CPI will be at 5.04% in December from 4.88% last month.
So far this year, the rupee has gained 0.4%, while foreign investors bought $341.30 million and $333.90 million in equities and bonds, respectively.
In the year 2017, the rupee gained 6.35% and Sensex rose 28%, while foreign institutional investors had bought $7.73 billion and $23.27 billion in equity and debt, respectively.
The 10-year bond yield ended at 7.248% compared to its previous close of 7.264%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher as the dollar slid after signals from the European Central Bank the economy may be strong enough to warrant scaling back guidance on stimulus.
China renminbi was up 0.70%, South Korean won 0.68%, Malaysian ringgit 0.39%, China offshore 0.38%, Indonesian rupiah 0.35%, Japanese yen 0.22%, Thai baht 0.16%, Singapore dollar 0.16%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 91.37, down 0.52% from its previous close of 91.852.