The Indian rupee on Tuesday closed higher for the four fourth consecutive session to hit a one-week high against the US dollar on the back of recent gains in domestic equity markets.
Indian rupee closed at 70.94 a dollar, up 0.29% from Friday's close of 71.15. The Indian unit had opened at 70.92 a dollar and touched a high and a low of 70.84 and 71.01 respectively. On Monday, markets were closed due to assembly election in Maharashtra.
The benchmark Sensex index fell 0.85% or 334.54 points to close at 38963.84. So far this year it gained 8.03%.
Traders also exercised caution and are awaiting fresh cues on the potential trade deal between the US and China. US President Donald Trump said China has indicated that negotiations over an initial trade deal are advancing, raising expectations the leaders could sign an agreement at a meeting next month in Chile.
The yield on the 10-year Indian government bond was at 6.543% compared with its previous close of 6.519%.
In the year so far, the rupee has weakened 1.65%, while foreign investors have bought nearly $8.90 billion in Indian equities and $4.03 billion in debt.
Asian currencies were trading mixed. Indonesian rupiah was up 0.285%, South Korean won rose 0.168%, and Japanese Yen gained 0.009%. However, Philippines peso was down 0.242%, Malaysian ringgit lost 0.167%, Thai Baht fell 0.129%, and China offshore was down 0.124%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.41, up 0.08% from its previous close of 97.328.
Bloomberg contributed this story