The Indian rupee on Monday weakened past 64 against the dollar after local equity markets fell over 1,000 points in the last four days. The local unit opened at 64.04 per dollar. At 9.10am, the home currency was trading at 64.02, down 0.43% from its previous close of 63.76. The Sensex rose 0.24% or 59 points to 26,833.66 points.
Investors were also cautious due to the uncertainty over Greece’s debt obligations and strong US labour market report which added 280,000 jobs in May, the largest gain since December, indicating that the US economy is returning to growth after contracting in the first three months of this year, Reuters reported.
The local markets fell on fears of drought after the India Meteorological Department cut its monsoon forecast to 88% from 93% earlier. Also, the US jobs report reinforced expectations that the Federal Reserve could raise interest rates in 2015.
The yield on India’s 10-year benchmark bond was trading at 7.813% compared with its Friday’s close of 7.789%. Bond yields and prices move in opposite directions.
On Friday, the US 10-year yield rose 10 basis points to close at 2.4004% from its previous close of 2.3070. A basis point is a hundredth of a percentage point.
Since the beginning of this year, the rupee has lost 1.65%, while foreign institutional investors have bought $7.04 billion from local equity and $5.79 billion from bond markets.
Most of the Asian currencies were trading lower. Malaysian ringgit was down 1.18%, South Korean won was down 0.86%, Indonesian rupiah was down 0.55%, Philippines peso was down 0.53%, Taiwan dollar was down 0.38% and Singapore dollar was down 0.18%. However, Japanese yen was up 0.15%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.451, up 0.15% from its previous close of 96.306.
Source:livemint.com
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