(Reuters file)
(Reuters file)

Rupee ends stronger at 69.35 against US dollar

  • The rupee ended at 69.35 a dollar, up 0.14%, from its previous close of 69.45
  • The Sensex rose 0.48% to close at 39,756.81 points

Mumbai: The Indian rupee closed stronger against the US dollar for the second day in a row, ahead of the release of key economic data later today.

The rupee ended at 69.35 a dollar, up 0.14% from its previous close of 69.45. The Indian had currency opened at 69.45 a dollar.

Traders await the release of consumer price index-based inflation (CPI) and index of industrial production (IIP) data for cues.

According to a poll of estimates of analysts surveyed by Bloomberg, retail inflation for May is seen rising to 3.05% from 2.92% a month ago. IIP growth is seen at 0.8% in April against -0.1% in March.

Traders also await the Union Budget, to be presented on 5 July, for the government’s fiscal deficit target and the borrowing calendar for 2019-20.

Meanwhile, the benchmark Sensex index rose 0.48% to close at 39,756.81 points. Year to date, the index has risen 11.77%.

Bond prices gained due to lower oil prices and an overnight fall in US Treasury yields. The 10-year bond yield was at 7.011% compared with Tuesday's close of 7.038%. Bond yield and prices moves in opposite directions.

So far this year, the rupee has risen 0.43% against the US greenback. During the period, foreign investors bought $11.31 billion in Indian equities and $1.28 billion in debt market.

Other Asian currencies traded on a mixed note, as investors assess US President Donald Trump’s comments on Federal Reserve policy and trade negotiations with China.

Trump said he was personally holding up the trade deal with China and won’t complete the agreement unless Beijing returns to terms negotiated early this year. In a separate tweet, he slammed the US Fed for raising interest rates, saying the euro and other currencies were “devalued" against the dollar

The South Korean won fell 0.1%, Philippines peso eased 0.09%, China renminbi was down 0.06%. However, the Hong Kong dollar was up 0.11%, while safe haven Japanese yen rose 0.05%.

Bloomberg contributed this story

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