Rupee weakens along with Asian peers after US threatens to raise China tariffs1 min read . Updated: 06 May 2019, 05:32 PM IST
- The 10-year bond yield was at 7.387% compared with Friday's close of 7.394%
- So far this year, the rupee is up 0.7%
MUMBAI: Mumbai: The Indian rupee on Monday weakened along with its Asian peers as the fate of trade talks between the world’s two biggest economies was left in doubt after the US threatened to raise tariffs.
The rupee ended at 69.41 a dollar, down 0.26% from its previous close of 69.22. The Indian currency had opened at 69.37 a dollar.
The 10-year bond yield closed at 7.395% compared with Friday's close of 7.393%. Bond yields and prices move in opposite directions.
US President Donald Trump on Sunday increased pressure on Beijing to strike a trade deal by announcing he would increase tariffs on $200 billion of Chinese imports to 25% from 10%. He also floated the possibility of extending a new 25% duty on another $325 billion in imports that aren’t now covered, Bloomberg reported.
The benchmark Sensex index fell 0.93% to 38,600.34 points. Year to date, the index has risen 8.03%.
So far this year, the rupee is up 0.7%. During the period, foreign investors bought $9.85 billion in equity and sold $320.10 million in debt market.
Asian currencies were trading lower. China Offshore was down 0.97%, China renminbi 0.75%, Indonesian rupiah 0.45%, Singapore dollar 0.32%, Philippines peso 0.27%, South Korean won 0.23%, Thai Baht 0.23%, South Korean won 0.2%, Malaysian ringgit 0.11%, Taiwan dollar 0.08%. However, Japanese yen was up 0.46%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.541, up 0.02% from its previous close of 97.52.
(Bloomberg contributed to this story)