Rupee closes lower against US dollar ahead of GDP data
The rupee closed at 64.46 a dollar, down 0.22% from its Wednesday’s close of 64.32
Mumbai: Indian rupee weakened against the US dollar after local equity markets fell over 450 points before the key gross domestic product (GDP) data due after 5.30pm on Wednesday.
The home currency closed at 64.46 a dollar, down 0.22% from its Wednesday’s close of 64.32. The rupee opened at 64.57 a dollar and touched a high and a low of 64.42 and 64.57 respectively.
According to Bloomberg analysts’ estimates, gross value added (GVA) likely rose 6.3% in the July-September quarter from 5.6% a quarter ago, while GDP will be at 6.5% from 5.7% last quarter.
India’s fiscal deficit at the end of October hit 96.1% of the budget estimate for 2017- 18, mainly due to lower revenue realisation and rise in expenditure, government data showed.
Traders are also cautious ahead of the Organisation of Petroleum Exporting Countries (Opec) meeting. Opec and Russia are ready to extend their oil production cuts until the end of next year to ensure global stockpiles keep falling and prices maintain recent gains, Bloomberg reported.
The benchmark Sensex fell 1.35%, or 453.41 points, to ended at 33,149.35. So far this year, it has gained 25%.
The 10-year bond yield was at 7.059%, compared to its previous close of 7.028%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5.2%, while foreign institutional investors have bought $8.94 billion and $22.60 billion in equity and debt, respectively.
Asian currencies were trading lower. South Korean won was down 1.03%, Japanese yen 0.36%, Philippines peso 0.22%, Indonesian rupiah 0.21%, Thai baht 0.19%, Malaysian ringgit 0.15%, Taiwan dollar 0.13%, Singapore dollar 0.11%. However, China renminbi was up 0.1%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.243, up 0.08%, from its previous close of 93.164.
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