Rupee closes flat against US dollar ahead of inflation data
The rupee ended at 68.77 a dollar, up 0.04% from its previous close of 68.82
Mumbai: The Indian rupee on Wednesday closed little changed against the US dollar ahead of key inflation data. The rupee ended at 68.77 a dollar, up 0.04% from its previous close of 68.82. The currency opened at 68.79 a dollar and touched a high and a low of 68.75 and 68.90, respectively.
Traders are awaiting Consumer Price Index-based (CPI) inflation and Index of Industrial Production data due to be released on 12 July. Retail inflation likely rose to a near two-year high in June, driven by surging oil and food prices, a Reuters poll showed.
According to a 4-9 July Reuters poll of 37 economists, retail prices rose at an annual 5.30% last month. That would be the fastest since July 2016, well above May’s 4.87% and keep inflation above the central bank’s 4% target for an eighth straight month.
The 10-year bond yield ended at 7.872%, from its Tuesday’s close of 7.899%. Bond yields and prices move in opposite directions.
So far this year, the rupee has weakened 7.15%, while foreign investors have sold $827.90 million and $6.23 billion in equity and debt markets, respectively.
Benchmark Sensex Index rose 0.07% or 26.31 points to 36,265.93. Since January, it has gained 6.41%
Asian currencies were trading lower after Trump administration released additional list of Chinese goods to impose tariffs.
The Trump administration pushed ahead with plans to impose tariffs on additional $200 billion in Chinese products by releasing a list of targets, marking a sharp escalation in a trade war between the world’s two largest economies.
China renminbi was down 0.44%, South Korean won 0.35%, China offshore 0.35%, Taiwan dollar 0.27%, Thai Baht 0.25%, Singapore dollar 0.20%, Malaysian ringgit 0.15%, Indonesian rupiah 0.13%, Japanese yen 0.05%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.209, up 0.06% from its previous close of 94.158.