Mumbai: The Indian rupee opened marginally higher against US dollar on Monday amid caution ahead of key macroeconomic data due later this week. The rupee strengthened against the greenback for the fourth consecutive session.
After opening at 71.68 to a dollar, the Indian currency traded at 71.64, up 0.13% from its Friday's close of 71.73.
Traders await the consumer price index-based inflation data and industrial production data on 12 September for further cues on the economy. According to Bloomberg analysts estimate, industrial production for July is likely to come at 2.5% from 2% a month ago. CPI is expected to be at 3.35% in August from 3.15% in June.
Oil extended gains after Saudi Arabia ousted its long-time energy minister before an OPEC+ committee that monitors compliance with output cuts meets this week in Abu Dhabi.
Yield on the 10-year Indian government bond was at 6.594% compared with its previous close of 6.602%.
In pre-trade, the benchmark equity index Sensex was down 0.03% at 36969.48 points. So far this year, the index has risen 2.5%.
In the year so far, the rupee has weakened 2.7%, while foreign investors have bought nearly $6.54 billion in Indian equities and $4.58 billion in debt.
Asian currencies were trading higher. South Korean won was up 0.43%, Malaysian ringgit rose 0.2%, Indonesian rupiah gained 0.17%, Philippines peso climbed 0.16%, Singapore dollar rose 0.08%, and Taiwan dollar was marginally higher. However, China Offshore was down 0.22%, China renminbi lost 0.08%, and Thai Baht declined 0.07%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.431, up 0.04% from its previous close of 98.394.
(Bloomberg contributed this story)