The Indian rupee on Friday strengthened against the US dollar after local equity markets surged as global crude oil prices fell for the second session after having surged above $75 a barrel.
The rupee ended at 70.02 a dollar, up 0.35% from its previous close of 70.26. The currency opened at 70.14 a dollar.The 10-year bond yield closed at 7.412% against Thursday's close of 7.446%. Bond yields and prices move in opposite directions.
India's benchmark Sensex index rose 0.87% to 39,067.33 points. Year to date, it has risen 7.38%. Brent crude traded at $73.05/bbl, down 1.75% from its previous close. Oil has climbed more than 40% this year amid output cuts by the Organization of Petroleum Exporting Countries and its allies and supply disruptions from Venezuela to Libya. It has also received a boost from the recent US decision to end waivers on Iranian sanctions.
So far this year, the rupee has weakened 0.7%, while foreign investors have bought $9.32 billion in equity and $11.6 million in the debt market. Asian currencies traded higher. The China Offshore was up 0.18%, the China renminbi rose 0.14%, the Malaysian ringgit was up 0.14%, the Thai baht was 0.12% higher, the Singapore dollar was up 0.1%, and the Philippine peso rose 0.07%. However, the South Korean won was down 0.05%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.147, a tad lower than its previous close of 98.203.