The Indian rupee on Thursday strengthened marginally against the US dollar, tracking the gains in the local equity markets.
At 2.35pm, the home currency was trading at 63.56, up 0.07% from its previous close of 63.60. The local unit opened at 63.61 per dollar and touched a high and a low of 63.55 and 63.63, respectively in intra-day trade. The Sensex was trading at 27,889.76, up 0.58%, or 160.09 points.
Investors were cautious after Greece said international lenders had rejected its latest proposals. The European nation’s prime minister will resume talks with creditors early on Thursday after a meeting of euro-area finance ministers in Brussels was adjourned without an agreement on bailout aid.
Overnight, US gross domestic product (GDP) data showed that the final figure for the first quarter was a 0.2% contraction, much smaller than the previously estimated 0.7%. That reinforced expectations that the US Federal Reserve is on track to raise interest rates this year, perhaps as early as September, Reuters reported.
The yield on India’s 10-year benchmark bond was trading at 7.818% compared with its Wednesday’s close of 7.799%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 0.87%, while foreign institutional investors have bought $6.31 billion from local equity
markets and $6.44 billion from bond markets.
Most of the Asian currencies were trading lower. Indonesian rupiah was down 0.2%, Malaysian ringgit 0.17%, South Korean won 0.15%, Taiwan dollar 0.1%, while the China Offshore declined 0.09%. However, Japanese yen was up 0.15%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.343, up 0.16% from its previous close of 95.264.
Source:livemint.com
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