(Bloomberg)
(Bloomberg)

Rupee trades weaker for third session as trade deficit widens

  • At 9.15am, the rupee was trading at 69.53 a dollar, down 0.16% from its previous close of 69.42
  • So far this year, the rupee has gained 0.4%

The rupee weakened against the US dollar today after India's trade deficit widened in March from a month ago due to higher oil prices.

At 9.15am, the rupee was trading at 69.53 a dollar, down 0.16% from its previous close of 69.42. The home currency opened at 69.43 a dollar.

The 10-year bond yield was trading at 7.38%, down from its Monday's close of 7.39%. Bond yields and prices move in opposite directions.

India's trade deficit in March was at $10.89 billion from $9.6 billion in February. The deficit is wider than the $9.7 billion median estimate in a Bloomberg survey of 24 economists. Oil imports rose 5.6% year-on-year to $11.8 billion in March from $9.38 billion in the previous month.

Exports rose 11% from a year ago to $32.6 billion, compared with a 2.4% gain in February and 0.66% drop in March last year. Imports rose 1.4% to $43.4 billion, against a 5.4% decline in February and 7.2% rise in the year-ago month.

So far this year, the rupee has gained 0.4%, while foreign investors have bought $8.85 billion in equity and $66.80 million in debt market.

India's benchmark index Sensex rose 0.34% to 39039.07 points. Year to date, it rose 7%.

Asian currencies were trading lower. South Korean won was down 0.27%, Malaysian ringgit 0.16%, China renminbi 0.07%, Thai Baht 0.06%, Philippines peso 0.06%, China Offshore 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.951, up 0.01% from its previous close of 96.942.

(Bloomberg contributed this story)

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