(Bloomberg)
(Bloomberg)

Rupee strengthens to 68.63 a dollar on Fed outlook

  • So far this year, the rupee has gained 1.4%
  • The 10-year bond yield was trading at 7.328% from its Wednesday's close of 7.361%

MUMBAI : The Indian rupee on Friday strengthened further against the US dollar after the Federal Reserve signalled a prolonged pause in monetary tightening' due to slowing growth and muted inflation.

At 9.15 am, the rupee was trading at 68.63 a dollar, up 0.32% from its previous close of 68.83. The home currency opened at 68.70 a dollar

On Wednesday, Federal Reserve Chairman Jerome Powell said interest rates could be on hold for “some time" as global risks weigh on the economic outlook and inflation remains muted.

The 10-year gilt yield was trading at 7.328% against its Wednesday's close of 7.361%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 1.4%, while foreign investors have bought $5.92 billion in equity and $125.50 million in the debt market.

India's benchmark Sensex rose 0.14% to 38,440.36 points. Year to date, it has risen 6.4%.

Asian currencies were trading mixed. The Philippines peso was up 0.24%, Japanese yen 0.08% and Thai baht 0.04%. However, the South Korean won was down 0.2%, Indonesian rupiah 0.12% and Chinese renminbi 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.328, down 0.17% from its previous close of 96.495.

(Bloomberg contributed to this story)

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