(Photo: Bloomberg)
(Photo: Bloomberg)

Rupee opens weaker against US dollar as crude surges

  • The 10-year bond yield was at 6.827%
  • The Indian currency had opened at 69.78 a dollar

Mumbai: The Indian rupee on Friday weakened against the US dollar after Brent crude surged as tensions flared in the Middle East after Iran shot down a US navy drone in the Persian Gulf.

At 9.15 am, the rupee traded at 69.73 a dollar, down 0.41% from its previous close of 69.44. The Indian currency had opened at 69.78 a dollar.

Overnight, crude surged nearly 4% and is set for its biggest weekly gain in four months after US President Donald Trump approved military strikes against Iran in retaliation to the downing of an American surveillance drone. However, he pulled back from launching them on Thursday night after a day of escalating tensions.

In India, the 10-year bond yield was at 6.827%, compared with Thursday's close of 6.792%.

The benchmark Sensex index is down 81.07 points, or 0.20%, at 39,485.77. Year to date, the index has risen 9.80%.

So far this year, the rupee has risen 0.12% against the US greenback. During the period, foreign investors bought $11.20 billion in Indian equities and $1.30 billion in the debt market.

Asian currencies were trading higher. Indonesian rupiah was up 0.62%, Japanese yen rose 0.38%, and Thai Baht gained 0.19%. Hong Kong dollar rose 0.12%, Singapore dollar gained 0.1%, and Philippines peso gained 0.05%. However, Taiwan dollar was down 0.21%, South Korean won fell and China renminbi lost 0.1%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 96.530, down 0.10% from its previous close of 96.629.

(Bloomberg contributed to this story)

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