Rupee extends gains against US dollar

Posted on by KNBT

So far this year, the rupee has weakened 6.74%, while foreign investors have sold $598.40 million and $6.11 billion in equity and debt markets, respectively. Photo: Mint

So far this year, the rupee has weakened 6.74%, while foreign investors have sold $598.40 million and $6.11 billion in equity and debt markets, respectively. Photo: Mint

Mumbai: The Indian rupee on Wednesday strengthened marginally against the US dollar, tracking gains in Asian currencies. At 9.15am, the rupee was trading at 68.50 a dollar, up 0.13% from its previous close of 68.58. The currency opened at 68.53 and touched a high of 68.47 and a low of 68.54 a dollar.

Traders are cautious as the government is likely to announce minimum support price for kharif crops, which could lead to inflationary pressures. The Cabinet committee on economic affairs (CCEA) will meet to approve the support price of kharif crops and is likely to raise paddy MSP sharply by Rs 200 to Rs 1,750 per quintal to honour the budget announcement to ensure that farmers get at least 1.5 times of the production cost, reported PTI.

Investors will also watch out for the US Federal Reserve meeting minutes due to be released on Thursday.

So far this year, the rupee has weakened 6.74%, while foreign investors have sold $598.40 million and $6.11 billion in equity and debt markets, respectively.

The 10-year bond yield stood at 7.878%, from its Tuesday’s close of 7.883%. Bond yields and prices move in opposite directions.

Benchmark Sensex Index fell 0.21% or 74.03 points to 35,304.57. Since January, it has gained 3.88%

Asian currencies were trading higher as the People’s Bank of China’s pledge to keep the yuan stable reduced investor anxiety before the U.S. tariff deadline on Friday.

China Offshore spot was up 0.39%, Indonesian rupiah 0.22%, Japanese yen 0.18%, China renminbi 0.18%, South Korean won 0.17%, Singapore dollar 0.11%, Philippines peso 0.09%, Thai Baht 0.09%, Malaysian ringgit 0.07%, Taiwan dollar 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.514, down 0.08% from its previous close of 94.591.

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