The Indian rupee erased all its morning gains and was trading weaker for the fourth consecutive session against the US dollar, on Tuesday, as foreign investors continued to liquidate their investment in the country, both in equities and debt.
At 2pm, the home currency was trading at 64.24 per dollar, down 0.11% from its previous close of 64.18. The local unit opened at 64.08 per dollar and touched a low of 64.25.
The Sensex was trading down 0.61% or 160.87 points at 26,425.68 points. The local equity markets have fallen more than 1,400 points, or 5% so far in June.
So far this month, foreign investors have sold a net of $483.01 million in local equities, while in May, they sold $67.09 million. Foreign institutional investors (FIIs) continued to sell Indian debt in June, taking overall sales in the last two months to $2.43 billion.
In the same period, FIIs have sold $1.13 billion in debt, after selling $1.3 billion in May. Selling from foreign investors has been heavy on certain days. For instance, on 11 June, FIIs sold $510.98 million, the heaviest selling seen since 27 January 2014, according to data from the securities and exchange board of india (Sebi).
Traders are cautious ahead of the US Federal Reserve meeting on 16-17 June and the breakdown of talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled traders and raised fears of a default on Greece’s debt and a possible exit from the currency bloc, the Wall Street Journal reported.
The yield on India’s 10-year benchmark bond was trading at 7.902% compared with its Monday’s close of 7.867%. Bond yields and prices move in opposite directions. Since the beginning of this year, the rupee has lost 1.85%, while FIIs have bought $6.66 billion from local equity and $5.04 billion from bond markets.
Most of the Asian currencies were trading lower. Taiwan dollar was down 0.44%, Indonesian rupiah 0.17%, South Korean won 0.11%, Japanese yen 0.1%, Philippines peso was down 0.07%. Malaysian ringgit, though, was up 0.25%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.784, down 0.02% from its previous close of 94.81.
Source:livemint.com
No comments:
Post a Comment