Mumbai: The rupee on Tuesday closed little changed against the US dollar as traders avoided taking long positions ahead of the final outcome of Lok Sabha elections due on May 23.
On Sunday, exit polls predicted that the Narendra Modi-led government will return to power for a second term, with Bharatiya Janata Party (BJP) and allies likely to secure over 300 seats in India’s 543-seat lower house.
The rupee ended at 69.72 against the dollar, up 0.03%, from its previous close of 69.74. The Indian currency opened at 69.76 against the dollar.
Traders also exercised caution after crude oil prices rose for the second day on signs that the Organization of Petroleum Exporting Countries (OPEC) and its allies will extend production cuts beyond June. Traders were also worried about the steadily deteriorating US-China relationship.
The Sensex fell 1% to 38,969.80. Year-to-date, the index has risen 8%.
The 10-year bond yield stood at at 7.304%, compared with Monday's close of 7.287%.
So far this year, the rupee has risen 0.03% against the US greenback. During the period, foreign investors bought $9.06 billion in Indian equities and sold $474.20 million in the debt market.
Other Asian currencies traded mixed on Tuesday. The Philippines peso was up 0.34%, China Offshore rose 0.19%, China renminbi was up 0.13%, South Korean won was 0.1% higher and Singapore dollar was up 0.09%. However, the Malaysian ringgit was down 0.18% Japanese yen eased 0.14%, Indonesian rupiah fell 0.1%, and the Taiwan dollar 0.05% lower.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.968, up 0.04%, from its previous close of 97.933.