The Indian rupee on Tuesday strengthened marginally against the US dollar tracking gains in its Asian peers. Emerging market assets rose as risk appetite improved following the cooling of tension between the US and China and a conclusive victory of the Conservative Party in the UK elections.
In early deals today, the rupee traded at 70.95 a dollar, up from Monday's close of 71.01. The Indian unit had opened 70.92 a dollar.
The 10-year bond yield was at 6.79% compared with the previous close of 6.80%.
In the year so far, the rupee has weakened 1.5%, while foreign investors have bought nearly $13.30 billion in Indian equities and $3.88 billion in debt.
In pre-opening trade, the benchmark Sensex was up 0.3% or 132.85 points at 41071.57 points. Year to date, it has gained 13.5%.
Asian currencies traded higher. South Korean won was up 0.6%, Taiwan dollar 0.3%, Philippines peso 0.1%, and Hong Kong dollar was a tad higher. However, China renminbi was down 0.08%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.099, up from its previous close of 97.019.
(Bloomberg contributed this story)