BackRupee closes higher against US dollar
The rupee ended at 68.35 against the US dollar, up 0.12% from its previous close of 68.43a level last seen on 29 November 2016
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Mumbai: The Indian rupee along with Asian currencies gained on Thursday as the US dollar retreated after Federal Reserve minutes suggested that the central bank has a reasonably high bar for accelerating its rate-hike program.
The home currency ended at 68.35 against the US dollar, up 0.12% from its previous close of 68.43. The currency opened at 68.32 a dollar and touched a high and a low of 68.29 and 68.42, respectively. So far this year, the currency fell 6.3%.
On Wednesday, the rupee weakened to an 18-month low against the US dollar after foreign investors continued to sell in the local equity and debt markets following the global trend amid surging crude oil prices. The rupee closed at 68.43 against the US dollar—a level last seen on 29 November 2016, down 0.56% from its previous close of 68.04.
The minutes from the Federal Reserve’s 1-2 May meeting eased market concerns that it would raise interest rates more quickly than expected. Federal Reserve officials signalled that they are set to raise interest rates at their meeting in June, but sent no clear message on whether they’d hike one or two more times this year following that move.
Since start of April, FIIs have sold a combined $6.23 billion in local equity and debt. Year to date, they have bought 284.50 million in equity and sold $4.15 billion in debt.
The 10-year bond yield stood at 7.868% from its Wednesday’s close of 7.849%. Bond yields and prices move in opposite directions.
Benchmark Sensex Index rose 0.93% or 318.20 points to 34663.11. Since January, it has gained 0.85%.
Among Asian currencies, Indonesian rupiah was up 0.54%, Japanese yen 0.4%, Thai Baht 0.17%, Singapore dollar 0.16%, Taiwan dollar 0.12%, South Korean won 0.08%, China renminbi 0.07%, Malaysian ringgit 0.07%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.887, down 0.12% from its previous close of 94.003.
Bloomberg and Reuters contributed this story
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