(Photo: HT)
(Photo: HT)

Rupee opens marginally higher ahead of key retail inflation

  • In the early trade, rupee traded at 69.38/$, up 0.10% from its previous close of 69.45/$
  • The 10-year bond yield was at 7.02% compared with Tuesday's close of 7.038%

Mumbai: The Indian rupee strengthened marginally on Wednesday against the US dollar ahead of key macro economic data due later.

At 9.05 am, the rupee traded at 69.38 a dollar, up 0.10% from its previous close of 69.45. The Indian had currency opened at 69.45 a dollar.

Traders await release of consumer price index-based inflation (CPI) and index of industrial production (IIP) data for further cues. According to Bloomberg analyst estimates, retail inflation for May is likely to be at 3.05%, up from 2.92% a month ago. IIP growth is seen at 0.8% in April against -0.1% in March.

Traders also await the Union Budget, which will be presented on 5 July, for the government’s fiscal deficit target and the borrowing calendar for 2019-20.

The benchmark Sensex index was up 0.04% at 39,966.48 points. Year to date, the index has risen 11.77%.

Bond prices gained due to lower oil prices and after US Treasury yields fell. The 10-year bond yield was at 7.02% compared with Tuesday's close of 7.038%.

So far this year, the rupee has risen 0.43% against the US greenback. During the period, foreign investors bought $11.31 billion in Indian equities and $1.28 billion in debt market.

Asian currencies were trading mixed as investors digest President Donald Trump’s comments on Federal Reserve policy and trade negotiations with China.

Trump said he’s personally holding up a trade deal with China and won’t complete the agreement unless Beijing returns to terms negotiated early this year. In a separate tweet, he slammed the Fed for raising interest rates, saying the euro and other currencies were “devalued" against the dollar

South Korean won was down 0.1%, Philippines peso 0.09%, China renminbi 0.06%. However, Hong Kong dollar was up 0.11%, Japanese yen 0.05%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 96.699, up 0.02% from its previous close of 96.686.

(Bloomberg contributed this story)