Indian rupee on Tuesday erased all gains made earlier in the day and closed little changed against the US dollar amid mixed trend in other Asian currencies.
The rupee ended at 69.35 a dollar, up 0.01% from its previous close of 69.35. The Indian currency had opened at 69.32 a dollar.
Asian currencies were mixed amid worries over tensions between the US and Iran. Earlier, Iran said the path to a diplomatic solution with the US had closed after the Donald Trump administration imposed new sanctions.
On Monday, Trump imposed new sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, and eight senior military commanders in retaliation to the downing of an American surveillance drone. The sanctions deny Khamenei and his office access to financial resources.
Traders also await a planned meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit this week.
The 10-year government bond yield closed at 6.88%, compared with Monday's close of 6.851%.
The benchmark equity index Sensex ended up 0.80% at 39,434.94 points. Year to date, the index has risen 8.47%.
So far this year, the rupee has risen 0.61% against the US greenback. During the period, foreign investors bought $11.03 billion in Indian equities and $1.48 billion in the debt market.
Among Asian currencies, Japanese yen was up 0.23%, South Korean won rose 0.15%, and Hong Kong dollar and Indonesian rupiah gained 0.06% each. The Taiwan dollar was down 0.1%, China Offshore declined 0.1%, Malaysian ringgit lost 0.1%, and China renminbi fell 0.07%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 95.934, down 0.05% from its previous close of 95.98.