Rupee opens marginally lower

  • The 10-year bond yield was trading at 7.316% from its Wednesday's close of 7.329%
  • So far this year, the rupee has gained 1.32%

MUMBAI: The Indian rupee on Wednesday weakened marginally against the US dollar, tracking losses in Asian currencies market.

At 9.15am, the rupee was trading at 69.02 a dollar, down 0.24% from its previous close of 68.88. The home currency opened at 69.11 a dollar.

Bond yield fell after the Reserve Bank of India increased investment limit for FY2019-20 for foreign portfolio investors in central government securities to 6% of outstanding stock of securities from 5.5% in FY2018-19.

The 10-year bond yield was trading at 7.316% from its Wednesday's close of 7.329%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 1.32%, while foreign investors have bought $6.35 billion in equity and $843.30 million in debt market.

India's benchmark index Sensex rose 0.20% to 38210.24 points. Year to date, it rose 5.72%.

Asian currencies were trading lower as risk-off sentiment deepens on global growth concerns. Philippines peso was down 0.31%, Indonesian rupiah 0.23%, South Korean won 0.19%, Malaysian ringgit 0.13%. However, Japanese yen was up 0.3%, Thai Baht 0.11%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.871, up 0.10% from its previous close of 96.774.

(Bloomberg contributed this story)

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