Rupee ends lower at 71.74 against dollar1 min read . Updated: 29 Nov 2019, 05:16 PM IST
- Asian currencies traded on a mixed note as traders awaits developments around US-China trade talks
- The Indian rupee had opened 71.58 against the US dollar
MUMBAI : The Indian rupee was subdued against the US dollar on Friday as traders exercised caution ahead of the release of gross domestic product data, due later today. Investors also kept an eye on developments around US-China trade deal.
In early deals today, the rupee was at 71.64 a dollar, down from Thursday's close of 71.60. The Indian unit had opened 71.58 a dollar.
The Indian economy probably grew 4.6% last quarter, which would be the least since the first three months of 2013, according to the median of estimates polled by Bloomberg.
"The near term outlook of the rupee depends upon outcome of the trade talks between the US and China. As US continued to interfere in Hong Kong issue, there are concerns that whether the deal will happen or not. If the trade talks fail then the US will go ahead with tariffs on Chinese goods from 15th December. There is also a threat of Yuan devaluation if the trade talks fail. Hence the outcome of the trade talks will determine the direction of the rupee," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers .
The yield on the 10-year Indian government bond was at 6.458% compared with its previous close of 6.472%.
In the year so far, the rupee has weakened 2.6%, while foreign investors bought nearly $13.25 billion in Indian equities and $4.48 billion in debt during the period.
In pre-opening trade, the benchmark Sensex was up nearly 0.2% or 72.69 points to 41093.30 points. Year to date, it has gained 14.03%.
Other Asian currencies traded on a mixed note as traders awaits developments around US-China trade talks. The Philippines peso was up 0.12%, and the China Renminbi and Japanese yen were a tad higher. However, the South Korean won was down 0.1%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.32, down 0.05% from its previous close of 98.37.
(Bloomberg contributed this story)