(Photo: Ramesh Pathania/Mint)
(Photo: Ramesh Pathania/Mint)

Rupee opens lower ahead of RBI monetary policy

  • At pre-open, the benchmark Sensex index was down 0.04% at 40,252.66 points
  • During the opening bell, the rupee traded at 69.04/$, up 0.32% from its previous close of 69.27

Mumbai: The Indian rupee opened weak against the US dollar before the Reserve Bank of India's (RBI) bi-monthly policy decision due on Thursday with expectation of a rate cut.

At 9.15 am, the rupee traded at 69.04 a dollar, up 0.32% from its previous close of 69.27. The Indian had currency opened at 69.14 a dollar.

Markets were closed on Wednesday due to Eid.

RBI is expected to reduce the repurchase rate by 25 basis points (bps) to 5.75%, according to a majority of economists surveyed by Bloomberg, three expects a 50 bps cut.

At pre-open, the benchmark Sensex index was down 0.04% at 40,252.66 points. Year to date, the index has risen 11.64%.

Bond yield fell as crude oil continued to slide easing concerns about inflation and government's finances. The 10-year bond yield was at 7.002% compared with Tuesday's close of 7.02%. Bond yields and prices move in opposite directions.

So far this year, the rupee has risen 0.74% against the US greenback. During the period, foreign investors bought $11.53 billion in Indian equities and $339.80 million in debt market.

Asian currencies were trading higher. Indonesian rupiah was up 1%, Japanese yen 0.2%, Malaysian ringgit 0.15%, Thai Baht 0.08%, Taiwan dollar 0.05%. However, South Korean won was down 0.15%, Philippines peso 0.07%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.277, down 0.04% from its previous close of 97.32.

(Bloomberg contributed this story)

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