The Indian rupee was trading lower against the dollar on Thursday, mirroring other Asian currencies after China’s inflation data disappointed, making markets in the region less attractive.
At 2.25pm, the rupee was trading at 62.26 a dollar, down 0.39% compared with its previous close of 62.02. The local currency opened at 62.17 per dollar and touched a low of 62.34 during the day—a level last seen on 20 February. India’s benchmark equity index Sensex was trading at 27,762 points, down 0.25%.
Most of the Asian currencies were trading lower. Japanese yen fell 0.33%, Malaysian ringgit 0.24%, China renminbi 0.21%, China offshore 0.21%, Thai Baht 0.17% and Indonesian rupiah 0.1%.
Since the beginning of this year, the rupee has weakened 0.75% against the dollar, while foreign institutional investors have bought $17.32 billion during the period from local equity markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 88.216, down 0.06% from its previous close of 88.271.
“Indian rupee traded lower against the greenback, in line with most of its Asian peers, as disappointing inflation data from China dented the demand for emerging market currencies,” Religare Retail Research wrote in its daily forex report.
China’s November retail inflation was below estimates at 1.4% from 1.6% in October and marks the lowest monthly reading since November 2009.
The yield on India’s 10-year benchmark bond stood at 7.878% compared with its Wednesday’s close of 7.908%. Bond yields and prices move in opposite directions. It touched a low of 7.874%—a last level seen on 15 July 2013.
The government will issue Consumer Price Inflation (CPI)-based inflation and index of industrial production (IIP) data on 12 December. A Bloomberg poll estimates CPI at 4.4% as compared with 5.52% in October and IIP at 2.7% for October as compared to 2.5% in September.
Source:livemint.com
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