Rupee closes higher against US dollar, bond yield rises
Mumbai: The Indian rupee strengthened against the US dollar on Thursday, tracking gains in the local equities and Asian currencies.
The home currency closed at 63.91, up 0.28% from its previous close of 64.09. The local currency opened at 63.94 and touched a high of 63.87 a dollar.
India’s benchmark Sensex index rose 0.41% or 141.52 points to 34,297.47. So far this year, Sensex has risen 0.87%.
The 10-year government bond yield gained nearly seven basis points after surging US treasury yield worried traders that it will curb inflows into the Asian nation’s sovereign debt. Higher international crude oil prices also weighted the sentiment, Bloomberg reported.
India’s 10-year bond yield ended at 7.57% from its Wednesday’s close of 7.49%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has fallen 0.14%, while foreign institutional investors have bought $1.13 billion from local equity and $2.11 billion in debt markets.
Asian currencies were trading higher. Taiwan dollar was up 0.79%, Malaysian ringgit 0.62%, Indonesian rupiah 0.51%, South Korean won 0.41%, Japanese yen 0.36%, China offshore 0.2%, Singapore dollar 0.12%, Thai baht 0.06%. However, Philippines peso was down 0.14%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 88.765, down 0.40% from its previous close of 89.121.