Mumbai: The Indian rupee weakened against the US dollar on Monday, tracking the losses in the local equity markets.

The home currency closed at 64.97, down 0.21% from its previous close of 64.83. The local unit opened at 65 per US dollar and touched a low of 65.02.

Traders are cautious ahead of the US Federal Reserve meeting scheduled for 27-28 October.

Bank of Japan (BoJ) policymakers will meet for a crucial rate review on 30 October as growing signs of recession and slumping oil prices challenge the scenario that the world’s third-largest economy is on track to hit an ambitious 2% inflation target, reports Reuters.

On 23 October, China cut interest rates by 25 basis points to 4.35%. This was the sixth rate cut by the Chinese central bank since November 2014. One basis point is a hundredth of a percentage point.

The benchmark Sensex index fell 0.4%, or 108.85 points, to 27,361.96.

The yield on India’s 10-year benchmark bond closed at 7.611% compared with its Friday’s close of 7.583%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 2.9%, while foreign institutional investors (FIIs) have bought $4.43 billion from local equity and $8.5 billion from bond markets.

Most Asian currencies closed mixed. South Korean won was down 0.8%, Taiwan dollar 0.53%, Indonesian rupiah 0.2% and Philippines peso 0.16%. However, Japanese yen was up 0.42%, Singapore dollar 0.4%, Malaysian ringgit 0.21%, Thai baht gained 0.14% and China offshore spot 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.885, down 0.25% from its previous close of 97.127.