Home >market >stock-market-news >Rupee closes higher against US dollar

Mumbai: The Indian rupee on Monday strengthened against the US dollar after local equity markets continued to scale fresh record highs.

The home currency closed at 63.49 a dollar, up 0.24% from its Friday’s close of 63.64. The rupee opened at 63.51 a dollar and touched a high and a low of 63.34 and 63.51, respectively.

The benchmark Sensex rose 0.73%, or 251.12 points, to 34,843.51. So far in 2018, it has gained 2.3%.

Data released by the Central Statistics Office (CSO) on Friday showed the Index of Industrial Production (IIP) rose to 8.4% in November from 2% in October.

Inflation measured by the Consumer Price Index (CPI) accelerated to 5.21% in December from 4.88% a month ago. Higher inflation in December was due to hardening vegetable prices (29%) and rising cost of housing (8.25%) after the government’s decision to increase house rent allowances for central government employees in line with the 7th Pay Commission recommendations.

Wholesale Price Index (WPI)-based inflation decelerated to 3.58% in December from 3.93% in the previous month.

ALSO READ | Market Wrap: Sensex, Nifty hit record closing highs, private banks up

The 10-year bond yield ended at 7.267% compared to its previous close of 7.282%. Bond yields and prices move in opposite directions.

So far this year, the rupee gained 0.6%, while foreign investors bought $259.10 million and $494.70 million in equities and bonds, respectively.

Gains in the Asian currencies market also supported the home currency. China Renminbi was up 0.53%, Japanese yen 0.43%, Malaysian ringgit 0.42%, China Offshore 0.4%, Taiwan dollar 0.29%, South Korean won 0.2%, Singapore dollar 0.18%, Indonesian rupiah 0.16%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 90.458, down 0.56% from its previous close of 90.974.

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