The rupee opened higher on Tuesday, trading stronger for the sixth consecutive session against the US dollar, tracking gains in Asian currencies.
At 9.10 am, the home currency was trading at 70.79 a dollar, up 0.17% from Wednesday's close of 70.91. The Indian unit had opened at 70.78 a dollar.
“Due to mixed global cues, investors are seen on the sidelines. Lack of fresh triggers is causing the rupee to trade in a range 70.80-71.05 in the last couple of days. Unless we get clarity on global geopolitical issues such as the US-China trade deal or Brexit, we won’t see much participation in the market. 70.75 is a crucial support in spot, a break of which can take prices to 70.50, while a bounce from there can lead to 71.20," said Rahul Gupta, currency head, Emkay Global Financial Services.
Traders are awaiting the results of state polls, which are expected to show Prime Minister Narendra Modi’s party winning a majority. Traders are also exercising caution and awaiting fresh cues on a potential trade deal between the US and China.
The yield on the 10-year Indian government bond was at 6.509%, against its previous close of 6.543%. Bond yield and prices move in opposite directions.
In the year to date, the rupee has weakened 1.5%, while foreign investors have bought nearly $8.76 billion in Indian equities and $4.12 billion in debt.
Asian currencies were trading higher. South Korean won was up 0.22%, Indonesian rupiah 0.16%, Taiwan dollar 0.15%, Thai Baht 0.12%, Philippines peso 0.09%, Japanese yen 0.08% and Malaysian ringgit 0.07%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.437, down 0.06% from its previous close of 97.491.
Bloomberg contributed this story