Rupee edges lower against the US dollar1 min read . Updated: 02 Apr 2019, 09:36 AM IST
- Crude oil prices have jumped to its highest level in nearly five months
- Most other Asian currencies were were trading lower against the US dollar
Indian rupee on Tuesday opened marginally weaker against US dollar after crude oil jumped to its highest level in nearly five months after strong data from US and China. At 9.15 am, the rupee was trading at 69.36 a dollar, down 0.29% from its previous close of 69.16. The home currency opened at 69.36 a dollar. Currency and bond markets were closed on Monday due to a bank holiday.
Analysts say strong data from US and China suggest that the global oil demand could perk up even as supplies of oil tighten.
The US Institute for Supply Management index rose to 55.3 from 54.2 as three of five main components increased. The result topped estimates in a Bloomberg survey calling for a rise to 54.5 and remained above the 50 level that indicates expansion.
Earlier, China’s March manufacturing purchasing managers index rose to 50.5 from 49.2, the biggest increase since 2012 and beating all economists’ estimates in data released on Sunday.
The 10-year bond yield was trading at 7.349% from its Friday's close of 7.351%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 0.6%, while foreign investors have bought $7.06 billion in equity and $560.20 million in debt market.
India's benchmark index Sensex rose 0.3% to 38,988 in pre-open trade. Year to date, it is up 7.77%.
Other Asian currencies markets were also trading lower against the US dollar. South Korean won was down 0.2%, China renminbi 0.13%, Thai Baht 0.11%, China Offshore 0.1%, Taiwan dollar 0.1%, Indonesian rupiah 0.1%, Malaysian ringgit 0.07%, Singapore dollar 0.05%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.335, up 0.11% from its previous close of 97.232.
(Bloomberg contributed this story)