Rupee trades lower against US dollar1 min read . Updated: 06 Dec 2019, 09:37 AM IST
- Traders await US jobs data report due later today, and track developments on the US-China trade deal front
- The Indian rupee had opened at 71.26 against the US dollar
Mumbai: The Indian rupee on Friday opened higher but soon erased all gains and was trading lower against the US dollar. At 9.10 am, the domestic currency was trading at 71.33 a dollar, down 0.05% from Thursday's close of 71.29. The Indian unit had opened at 71.26 a dollar.
Traders await US jobs data report due later today, and track developments on the US-China trade deal front.
The Indian rupee rose sharply in the last hour of trade on Thursday after the Reserve Bank of India (RBI) promised to continue with its accommodative stance in its monetary policy. The central bank kept its key interest rates unchanged amid inflationary concerns, a move that surprised investors who were expecting at least 25 basis points cut in the policy rate.
Many analyst believes that the RBI might have taken a pause observing the fiscal slippage, impact of telecom price increases on inflation, while awaiting some amount of rate transmission of earlier cuts.
In the year so far, the rupee weakened 2.13%, while foreign investors have bought nearly $13.18 billion in Indian equities and $4.42 billion in debt.
The yield on the 10-year Indian government bond was at 6.602% compared with its previous close of 6.613%. The benchmark equity index Sensex rose 0.3% at 40894.10 points. Year to date, it has gained 13.06%.
Asian currencies were trading higher as US President Donald Trump suggested trade talks with China were making progress ahead of 15 December when the next tranche of US tariffs kick in.
Indonesian rupiah was up 0.24%, Philippines peso 0.18%, Malaysian ringgit 0.08%, Japanese yen 0.06%, and Thai Baht 0.05%. China Offshore was down 0.1%, and South Korean won and China renminbi were down 0.05% each.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.367, down 0.04% from its previous close of 97.41.
(Agencies contributed to this story)