Rupee closes lower against US dollar ahead of RBI policy review
The rupee closed at 67.15 against the US dollar, down 0.06% from its previous close of 67.11
Mumbai: The Indian rupee on Tuesday closed marginally lower against the US dollar as traders turned cautious ahead of the Reserve Bank of India’s bi-monthly policy outcome.
The rupee closed at 67.15 against the US dollar, down 0.06% from its previous close of 67.11. The currency opened at 67.08 a dollar and touched a high and a low of 67.07 and 67.23, respectively.
Of the 15 economists surveyed by Mint, 11 expect the central bank to keep the repo rate—the rate at which the central bank infuses liquidity in the banking system—unchanged at 6%. Only four economists expect RBI to raise rates by 25 basis points (bps).
The 10-year bond yield ended at 7.837% from its Monday’s close of 7.876%. Bond yields and prices move in opposite directions.
So far this year, the rupee has weakened 4.83%, while foreign investors have sold $225.90 million and $4.45 billion in equity and debt markets, respectively.
Benchmark Sensex Index fell 0.31% or 108.68 points to 34,903.21. Since January, it has gained 2.4%.
Asian currencies were trading higher. South Korean won was up 0.35%, Taiwan dollar 0.19%, Thai baht 0.17%, Singapore dollar 0.1%, Philippines peso 0.09%. However, Malaysian ringgit was down 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.068, up 0.03% from its previous close of 94.038.