Rupee marginally higher against US dollar1 min read . Updated: 28 Jan 2019, 11:55 AM IST
- Bond yields were little changed as traders remained cautious ahead of interim budget
- Most of the other Asian currencies were higher
Rupee rises on hopes of easing US-China trade tension
The rupee and Asian currencies on Monday strengthened against the US dollar as traders anticipated a positive outcome from the next round of US-China trade talks.
At 9.15 am, the currency was trading at 71.02 to a dollar, up 0.21% from its Friday's close of 71.17. The home currency opened at 70.96 to a dollar and touched a high of 70.96 to a dollar.
Bond yields were little changed as traders awaits the Union budget on 1 February and details of the government’s borrowing programme.
The yield on the most-traded 2028 paper was trading at 7.554% against its previous close of 7.546. The yield on government bonds due in January 2029 was trading at 7.345% against its previous close of 7.331. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.33% to 36,144.87 points. Year to date, it has declined 0.12%.
So far this year, the rupee has declined 1.97%, while foreign investors have sold $549.80 million and $317.10 million in the equity and debt markets, respectively.
Asian currencies were trading higher. The Indonesian rupiah was up 0.39%, South Korean won 0.39%, Malaysian ringgit 0.36%, the Philippines peso 0.22%, Taiwan dollar 0.22%, Chinese renminbi 0.18%, Japanese yen 0.18%, China Offshore 0.14%, Singapore dollar 0.07%, and Thai baht 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.764, down 0.03% from its previous close of 95.794.
(Bloomberg contributed to this story)