Rupee closes below 70 a dollar
The rupee ended at 70.11 a dollar, down 0.41%, from its Tuesday’s close of 69.83
Mumbai: The Indian rupee on Thursday weakened past 70 a dollar, tracking losses in its Asian peers after Fed minutes continued to signal further rate hikes if US economy stays on track. The rupee ended at 70.11 a dollar, down 0.41%, from its Tuesday’s close of 69.83. The home currency opened at 70 a dollar and touched a low of 70.17. On Wednesday, markets were closed due to Eid.
The Fed’s most recent policy meeting minutes showed that the US central bankers are ready to raise interest rates again if the economy remains strong. That left little doubt that Chairman Jerome Powell plans to raise the benchmark lending rate next month.
The 10-year bond yield ended at 7.879%, from its previous close of 7.828%. Bond yields and prices move in opposite directions.
Benchmark Sensex Index rose 0.13% or 51.01 points to 38,336.76. Since January, it has gained 12.4%.
So far this year, the rupee has weakened 9.2%, while foreign investors have sold $554.60 million and $5.53 billion in equity and debt markets, respectively.
Asian currencies were trading lower. China renminbi was down 0.45%, China Offshore 0.39%, Indonesian rupiah 0.38%, Thai Baht 0.38%, Singapore dollar 0.33%, South Korean won 0.28%, Japanese yen 0.23%, Malaysian ringgit 0.18%, Taiwan dollar 0.14%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.423, up 0.29% from its previous close of 95.146.
Bloomberg contributed this story
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