The Indian rupee on Monday strengthened for the second consecutive session against the dollar, tracking the gains in the local equity markets.
The local unit opened at 63.87 per dollar. At 9.10am, the home currency was trading at 63.84, up 0.16% from its previous close of 63.94.
Traders are cautious ahead of the Index of Industrial Production (IIP) data for March and Consumer Price Index (CPI)-based inflation data for April which will be issued by the government on Tuesday. A Bloomberg poll estimates that IIP will be at 2.9% in
March as compared with 5% in February, while CPI will be at 4.9% in April compared with 5.17% in March.
The Sensex rose 0.53% or 143.03 points to 27,249.42 points. Foreign institutional investors (FIIs) have sold $2.29 billion in equity markets in the last 14 out of 15 sessions, except on 21 April when FIIs bought $2.6 billion. In May so far, FIIs have sold $937.48 million in debt and $551 million in equity.
Most of the Asian currencies were trading lower. Singapore dollar was down 0.32%, Malaysian ringgit was down 0.21%, South Korean was down 0.16% and Japanese yen was down 0.1%, while Philippines peso was up 0.1%.
The yield on India’s 10-year benchmark bond was trading at 7.930% compared with its Friday’s close of 7.983%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 1.4%, while FIIs have bought $6.66 billion from local equity and $6.51 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.10, up 0.33% from its previous close of 94.794.
Source:livemint.com
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