Rupee, bond prices fall as crude gains

  • So far this year, the rupee has gained 0.44%
  • Asian currencies were trading higher

MUMBAI : Rupee opened marginally weaker against US dollar while 10-year government bonds were trading lower for the fourth consecutive session today to hit a near six-week low after continued rising crude increased inflationary and fiscal slippage fears.

At 9.15am, the 10-year bond yield was trading at 7.417% -- a level last seen on 27 February, from its Monday's close of 7.402%. Bond yields and prices move in opposite directions.

The rupee was trading at 69.71 a dollar, down 0.06% from its previous close of 69.67. The home currency opened at 69.59 a dollar.

Oil extended gains to the highest since early November as geopolitical conflicts in Libya and Iran escalate. So far this year, crude surged over 32%.

So far this year, the rupee has gained 0.44%, while foreign investors have bought $7.08 billion in equity and sold $282.70 million in debt market.

India's benchmark index Sensex rose 0.06% to 38723.09 points. Year to date, it rose 7.3%.

Asian currencies were trading higher. South Korean won was up 0.17%, Japanese yen 0.14%, Indonesian rupiah 0.11%, Philippines peso 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.004, down 0.05% from its previous close of 97.05.

(Bloomberg contributed this story)