Other Asian currencies also traded higher
Other Asian currencies also traded higher

Rupee trades higher for sixth session today

  • Having opened at 71.43 to a dollar, the Indian currency, in early deals, traded the unit touched a high of 71.30
  • Traders will await consumer price inflation and industrial production data due later today

The Indian rupee rose against the greenback for the sixth straight session to hit near one month high on Thursday, tracking gains in Asian currencies which firmed up after US President Donald Trump delayed imposing additional tariffs on imports from China.

Having opened at 71.43 to a dollar, the Indian currency, in early deals, traded the unit touched a high of 71.30 — a level last seen on 19 August. At 9.36 am, the home currency was trading at 71.33, up 0.47% from its Wednesday's close of 71.67.

Trump said he was postponing the imposition of 5% extra tariffs on Chinese goods by two weeks, delaying an escalation in the trade war ahead of upcoming negotiations. China, late on Wednesday, said it will exempt a range of US goods from extra tariffs put in place last year.

Back home, traders will await consumer price inflation and industrial production data due later today. The data points will likely have a bearing the central bank’s interest rate decision next month. India’s CPI probably rose 3.32% year on year in August, according to the median estimate of a Bloomberg survey. In July, CPI rose 3.15%. IIP likely expanded 2.3% year-on-year in July, faster than 2% seen in June.

The 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 up 0.17% at 37332.87 points. So far this year, the index has risen 3.33%.

In the year so far, the rupee has weakened 2.7%. Foreign investors bought nearly $6.40 billion in Indian equities and $4.71 billion in debt during the same period.

Other Asian currencies also traded higher. South Korean won was up 0.44%, Taiwan dollar 0.42%, China Renminbi 0.35%, China Offshore 0.33%, Philippines peso 0.29%, Thai Baht 0.26%, Singapore dollar 0.20%, Indonesian rupiah 0.16%, Malaysian ringgit 0.16%, Hong Kong dollar 0.1%. However, the Japanese yen was down 0.2%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.637, down 0.01% from its previous close of 98.645.

(Bloomberg contributed this story)


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