Rupee strengthens against US dollar for 2nd session

Posted on by KNBT

So far this year, the rupee has weakened 8.3%, while foreign investors have sold $383.50 million and $5.40 billion in equity and debt markets, respectively. Photo: Bloomberg

So far this year, the rupee has weakened 8.3%, while foreign investors have sold $383.50 million and $5.40 billion in equity and debt markets, respectively. Photo: Bloomberg

Mumbai: The Indian rupee strengthened for the second session on Tuesday, tracking gains in Asian peers as the dollar declined after US President Donald Trump criticized the Federal Reserve’s rate hikes. At 9.15am, the rupee was trading at 69.62 a dollar, up 0.30%, from its Monday’s close of 69.83. The home currency opened at 69.67 a dollar and touched a high of 69.61.

Bond yields also declined for the second session. “Gilts were largely supported by recovery in the rupee which had fallen to an all-time low of 70.16 last week. The recently released minutes of the MPC favoured continuity of the neutral stance dissipating fears of further immediate rise in policy rates which braced sentiments as well”, said Edelweiss Financial in a note to its investors.

Also Read: Donald Trump accuses China, Europe of manipulating currencies

The 10-year bond yield stood at 7.831%, from its previous close of 7.838%. Bond yields and prices move in opposite directions.

Traders also await the minutes of US Federal Reserve’s July meeting due to be released on 22 August.

Benchmark Sensex Index rose 0.14% or 52.61 points to 38,331.36. Since January, it has gained 12.4%.

So far this year, the rupee has weakened 8.3%, while foreign investors have sold $383.50 million and $5.40 billion in equity and debt markets, respectively.

Asian currencies were trading higher. Thai baht was up 0.46%, South Korean won 0.43%, Malaysian ringgit 0.19%, China renminbi 0.18%, Singapore dollar 0.15%, Indonesian rupiah 0.1%, Philippines peso 0.05%, Japanese yen 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.549, down 0.36% from its previous close of 95.90.

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