Mumbai: Mumbai: The Indian rupee on Monday weakened against the US dollar with traders exercising caution as they await gross domestic product (GDP) data and developments around US-China trade talks.
The rupee closed at 71.73 a dollar, a tad lower from Friday's close of 71.71. The Indian unit had opened at 71.71 a dollar.
The government will release GDP data on Friday. According to a median of estimates polled by Bloomberg, the Indian economy is likely to have expanded 4.6% in the last quarter -- the least since the first three months of 2013.
“The delay in US-China trade deal is keeping market participants on sidelines. This week USD/INR remained pretty range bound, while conflicting and mixed messages by the (Donald) Trump administration kept rupee on the edge. A long pause will further weaken risk appetite. For the this week, we expect USD/INR spot to trade within 71.55-72.25 range. 72 will act as a strong resistance, until and unless there is clarity over trade deal," said Rahul Gupta, head of currency at Emkay Global Financial Services.
The yield on the 10-year Indian government bond was at 6.47% compared with its previous close of 6.50%.
In the year so far, the rupee has weakened 2.7%, while foreign investors have bought nearly $12.4 billion in Indian equities and $4.57 billion in debt during the period.
The Sensex gained 1.3% or 529.82 points today to close at 40889.23 points. Year to date, it has gained 13.37%.
Other Asian currencies had a mixed day today. The South Korean won rose 0.3%, China Offshore was 0.2% up, and the Taiwan dollar was a tad higher. However, the Japanese yen lost 0.2%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.29 compared with its previous close of 98.27.
(Bloomberg contributed this story)