Mumbai: The Indian rupee strengthened against the US dollar on Tuesday, tracking gains in the Asian currencies market.

Traders were cautious after local equity markets fell over 1,300 points in the last six consecutive sessions. There are also worries about Greece debt and the US jobs report which has reinforced expectations that the US Federal Reserve could raise interest rates as early as September.

The home currency closed at 63.93, up 0.25% from its previous close of 64.09 per dollar. The local unit opened at 63.98 per dollar and touched a high of 63.86.

The Sensex fell 0.16%, or 41.84 points, to 26,481.25. Overnight, Brent crude oil fell 1% to $62.69 a barrel from its previous close of $63.31 a barrel.

The yield on India’s 10-year benchmark bond closed at 7.791% compared with its Monday’s close of 7.804%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 1.38%, while foreign institutional investors have bought $6.97 billion from local equity and $5.80 billion from bond markets.

Most of the Asian currencies closed higher. Indonesian rupiah was up 0.58%, Malaysian ringgit 0.52%, Japanese yen 0.40%, South Korean won 0.4%, Philippines peso 0.38%, Singapore dollar up 0.27%, while Thai Baht gained 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.208, down 0.10% from its previous close of 95.299.

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