Rupee closes lower against US dollar ahead of inflation data
The rupee ended at 67.49 against the US dollar, down 0.07% from its previous close of 67.43
Mumbai: The Indian rupee weakened marginally against the US dollar on Tuesday ahead of key consumer price index (CPI)-based inflation data, due to be released after 5.30pm.
The rupee ended at 67.49 against the US dollar, down 0.07% from its previous close of 67.43. The currency opened at 67.50 a dollar and touched a high and a low of 67.36 and 67.53 respectively.
The 10-year bond yield closed at 7.966% from its Monday’s close of 7.962%. Bond yields and prices move in opposite directions.
According to Bloomberg estimates, Index of Industrial Production (IIP) will be at 6% for April from 4.4% a month ago. CPI inflation may come at 4.90% for May versus 4.58% last month.
Traders also await the outcome of monetary policy reviews by the world’s three biggest central banks. The US Federal Reserve is expected to raise interest rates on Wednesday, while the European Central Bank members are poised to hold the first formal talks on ending its bond-buying program Thursday. The Bank of Japan meets on Friday, with no change to policy expected.
So far this year, the rupee has weakened 5.40%, while foreign investors have bought $169 million and sold $4.65 billion in equity and debt markets, respectively.
Benchmark Sensex Index rose 0.59% or 209.05 points to 35,692.52. Since January, it has gained 4.1%.
Asian currencies fell as the dollar was buoyed by optimism the Trump-Kim summit will ease geopolitical tension. Indonesian rupiah was down 0.41%, Japanese yen 0.19%, Philippines peso 0.1%, Thai baht 0.09%, Taiwan dollar 0.07%, Malaysian ringgit 0.06%. However, South Korean won was up 0.17%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.699, up 0.06% from its previous close of 93.535.