Rupee closes at 10-week high against US dollar
Mumbai: Indian rupee on Monday rebounded to closed at near 10-week high against the US dollar after local equity markets ended higher for eight consecutive sessions.
The home currency closed at 64.50 a dollar—a level last seen on 20 September, up 0.31% from its Friday’s close of 64.70. The rupee opened at 64.74 a dollar and touched a high and a low of 64.49 and 64.83 respectively.
Traders are cautious ahead of the gross domestic product (GDP) data for the third quarter due on 30 November. According to Bloomberg analysts’ estimates, gross value added (GVA) will be at 6.3% from 5.6% a quarter ago, while GDP will be at 6.5% from 5.7% last quarter.
The benchmark Sensex rose 0.15%, or 52.07 points, to 33,627.17. So far this year, it has gained 26%. Sensex closed for eight sessions, its longest winning streak since September.
Bond yield rose for the fifth consecutive session—a longest winning streak since September—as traders were worried on inflation and fiscal slippages due to continued rise in crude oil prices that boosted speculations the Reserve Bank of India may not cut rates any time soon.
On Friday, rating agency Standard and Poor’s kept its India rating unchanged at the lowest investment grade of BBB-, with a stable outlook, citing a sizeable fiscal deficit, high general government debt and low per capita income.
The 10-year bond yield ended at 7.056%, compared to its previous close of 7.003%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5%, while foreign institutional investors have bought $8.34 billion and $22.66 billion in equity and debt, respectively.
Asian currencies were trading higher before US economic data and speeches by US Federal Reserve officials this week.
Philippines peso was up 0.58%, Japanese yen 0.32%, Thai baht 0.11%, Hong Kong dollar 0.07%, Malaysian ringgit 0.07%, China renminbi 0.06%. However, South Korean won was down 0.31%, Taiwan dollar 0.11%, China offshore 0.1%. Indonesian rupiah 0.07%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.629, down 0.17%, from its previous close of 92.782.