Rupee moves lower against US dollar1 min read . Updated: 04 Feb 2019, 09:21 AM IST
- Dollar gained on better-than-expected US jobs data
- So far this year, the rupee has declined 2.08%
Indian rupee today weakened, tracking losses in other Asian currencies as dollar gained after stronger-than-expected US jobs data. At 9.08 am, the rupee was trading at 71.67 a dollar, down 0.59% from its previous close of 71.26. The home currency opened at 71.54 a dollar.
US hiring in January topped all forecasts while wage gains cooled and the government shutdown pushed up the unemployment rate.
So far this year, the rupee has declined 2.08%, while foreign investors have sold $75.4 million and $367.20 million in the equity and debt markets respectively.
Bond yields gained further after higher-than-expected borrowing program announced by the government in the interim budget. The government announced record borrowing plan at ₹7.04 trillion for fiscal year 2020, higher than ₹6.4 trillion according to Bloomberg estimates, to meet the expenditure targets.
The 10-year bond yield was trading at 7.4% from its Friday's close of 7.375%. Bond yields and prices move in opposite directions.
Other Asian currencies were trading lower. China renminbi was down 0.68%, China Offshore 0.3%, Taiwan dollar 0.23%, South Korean won 0.23%, Singapore dollar 0.2%, Philippines peso 0.18%, Indonesian rupiah 0.13%, Thai Baht 0.08%, and Japanese yen 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.636, up 0.06% from its previous close of 95.579.
(Bloomberg contributed this story)