Mumbai: The Indian rupee on Thursday closed at a one month low against the US dollar after local equity markets erased all the gains and ended little change ahead of the rollout of good and services tax from 1 July.

The rupee closed at 64.63 a dollar—a level last seen on 30 May, down 0.12% from its Wednesday’s close of 64.55. The rupee opened at 64.46 a dollar and touched a high and a low of 64.44 and 64.64, respectively.

Earlier in the day, Sensex gained as much as 0.85% or 263.60 points. However, it erased most of the gains as investors turned cautious ahead of the GST rollout. The benchmark Sensex index rose 0.08% or 23.20 points to closed at 30,857.52. So far this year, it has risen 16%.

The government to hold special midnight session of Parliament on 30 June to rollout GST.

10 year bond yield gained for the fourth consecutive sessions and closed over three week higher. It closed at 6.507%—a level last seen on 6 June, compared to its previous close of 6.498%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 5.1%, while foreign investors bought $8.45 billion and $14.17 billion in local equity and debt markets, respectively.

Asian currencies were trading higher after central bankers around the world signalled that interest rates may need to rise with the global economy solid enough to withstand tighter financial conditions.

South Korean won was up 0.42%, China renminbi 0.3%, China offshore 0.22%, Taiwan dollar 0.2%, Indonesian rupiah 0.12%, Philippines peso 0.12%, Singapore dollar 0.08% and Malaysian ringgit 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.871, down 0.14% from its previous close of 96.01.

US Federal Reserve chair Janet Yellen sparked the rally in banks after she reiterated this week that the central bank’s tightening is on track. Bank of England governor Mark Carney suggested on Wednesday that the time is nearing for a rate increase.

Dollar is headed for the third day of losses amid doubts over US President Donald Trump’s ability to push through key reforms.

Bloomberg contributed to this story