The Indian rupee on Monday ended marginally higher against the US dollar as foreign investors continue to buy in local equities and debt market. Gains in Asian currencies amid optimism that China and US are moving closer towards an interim trade deal also improved sentiment.
The domestic currency closed at 70.77 a dollar, up 0.06% from Friday's close of 70.81. The Indian unit opened at 70.61 a dollar and touched a high of 70.56 -- a level last seen on 30 September.
The yield on the 10-year Indian government bond was at 6.475% compared with its previous close of 6.443%.
Foreign investors have bought a combined over $2.06 billion in the last three sessions in domestic and bond markets. In the year so far, the rupee has weakened 1.18%, while foreign investors have bought nearly $10.22 billion in Indian equities and $4.69 billion in debt.
Asian currencies ended higher after US Commerce Secretary Wilbur Ross said he was optimistic an initial trade deal would be signed with China this month.
South Korean won ended 0.54% higher, Malaysian ringgit rose 0.357%, Indonesian rupiah 0.178%, Philippines peso 0.168%, China Offshore 0.156%, Taiwan dollar 0.125%, China renminbi 0.058%, and Singapore dollar 0.044%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.309, up 0.07% from its previous close of 97.239.
(Bloomberg contributed this story)