Home >Markets >Stock Markets >Rupee weakens as trade tensions worsen

Mumbai: The Indian rupee on Friday weakened further in line with emerging Asian peers after the US President Trump escalated the trade war with China by announcing new tariffs.

The Indian currency opened at 69.24 a dollar, and at 9.10 am, it was trading at 69.22 -- a level last seen on 27 June, down 0.26% from its previous close of 69.06.

Bond yield fell 10 basis points (bps) after government said its gross goods and services tax (GST) collections stood at 1.02 lakh crore in July. The yield on the 10-year government bond was at 6.334%, down 10 bps, compared with Thursday's close of 6.422%.

The US President Donald Trump abruptly escalated his trade war with China, announcing that he would impose a 10% tariff on a further $300 billion in Chinese imports in a move set to hit American consumers more directly than any other in his trade wars so far.

The benchmark equity index Sensex was down 0.33% to 36896.66 points. So far this year, the index has risen 2.2%.

The rupee has risen 1.02% against the greenback in the year so far. Foreign investors bought $9.40 billion in Indian equities and $2.65 billion in the debt market during the period.

Other Asian currencies also traded lower. Indonesian Rupiah was down 0.66%, South Korean won 0.60%, China renminbi 0.5%, Philippines peso 0.37%, Malaysian ringgit 0.26%. However, Japanese yen was up 0.28%, Singapore dollar 0.09%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.423, up 0.05% from its previous close of 98.369.

(Bloomberg contributed to this story)

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