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Rupee weakens against US dollar on Asian cues

Mumbai: The Indian rupee on Tuesday weakened against the US dollar, tracking losses in the Asian currencies market.

At 2.15pm, the home currency was trading at 65.54 against the dollar, down 0.39% from its Friday’s close of 65.28. The rupee opened at 65.63 a dollar and touched a low of 65.67. Markets were closed on Monday on account of Gandhi Jayanti.

Asian currencies were trading lower as the dollar gained after American factory data released on Monday beat estimates supporting the case for the US Federal Reserve to raise interest rates.

Japanese yen was down 0.21%, Singapore dollar 0.15%, Malaysian ringgit 0.1% and South Korean won 0.04%. However, China renminbi was up 0.12% and China offshore 0.07%.

Traders are cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly policy decision on Wednesday. According to Mint’s poll of 15 economists, the monetary policy committee is likely to keep the key repo rate unchanged at 6% after economic growth slowed to the weakest pace in at least three years, as risks of inflation exceeding the central bank’s target remain.

The BSE benchmark index rose 0.64%, or 200.89 points, to 31,484.61. So far this year, the Sensex has gained over 18%.

The 10-year bond yield was at 6.645%, compared to its previous close of 6.663%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 3.6%, while foreign institutional investors have bought $5.34 billion and $20.07 billion in equity and debt, respectively.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.809, up 0.27% from its previous close of 93.559.

Source:livemint.com

Categories:   Stock Market

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