In the year so far, the rupee has weakened 3.26%
In the year so far, the rupee has weakened 3.26%

Rupee opens higher as US, China agree to trade talks

  • The rupee is likely to move in a range of 71.40-72.50 levels for the next few trading sessions
  • Meanwhile, the yield on the 10-year Indian government bond was at 6.583% compared with its previous close of 6.551%

The Indian rupee pared some gains made against the US dollar in early session but continued to trade higher on Thursday tracking

emerging-market peers, as US and China agreeing to hold trade parleys in October boosted risk appetite.

Having opened at 71.85 to a dollar, the Indian currency traded at 71.92 in afternoon trade, up 0.29% from its Wednesday's close of 72.12.

The rupee is likely to move in a range of 71.40-72.50 for the rest of the day, according to CR Forex Advisors.

According to reports, the talks between US and China will be held in Washington and follows a phone call between China’s Vice Premier Liu He, US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer.

Meanwhile, the yield on the 10-year government bond was at 6.561% compared with its previous close of 6.551%.

In afternoon trade, the benchmark equity index Sensex was down 0.32% at 36608.97 points. So far this year, the index has risen 1.50%.

In the year so far, the rupee has weakened 2.97%. Foreign investors have bought nearly $6.77 billion in Indian equities and $4.50 billion in debt.

Among Asian currencies, South Korean won was up 0.6%, Malaysian ringgit climbed 0.24%, Taiwan Dollar gained 0.9%, China Offshore rose 0.07% and China Reminbi was up 0.07%. The safe haven Japanese yen was, however, down 0.11%, Philippines peso declined 0.096%, Thai Baht fell 0.075% and Singapore dollar lost 0.014%.

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