The Indian rupee weakened against the US dollar on Wednesday, tracking the losses in Asian equity markets. The local unit opened at 63.55 per dollar. At 9.11am, the home currency was trading at 63.58, down 0.2% from its previous close of 63.46.
Most of the Asian currencies were trading lower. South Korean won was down 0.55%, Singapore dollar 0.18%, Indonesian rupiah 0.12%, Taiwan dollar 0.1% and Thai baht 0.06%. However, Japanese yen was trading up 0.29%. The Sensex was trading at 28,031.45, down 0.50% or 140.24 points.
It is expected that weakness in the Asian markets will also impact India which could lead to sales by foreign institutional investors (FIIs) here. Asian markets fell, especially China’s Shanghai Composite Index that lost 5.2% to 3,535.20 points. Measures to stabilize equities is failing to stop the bear-market rout as traders unwind margin bets at a record pace, Bloomberg reported.
Hong Kong’s Hang Seng was down 4.6%, Japan’s Nikkei Stock Average was down 1.5%, Korea Stock Exchange KOSPI Index fell 1.3% and Taiwan Stock exchange Weighted Index fell 2.7%.
The yield on India’s 10-year benchmark bond was trading at 7.785% compared with its Tuesday’s close of 7.784%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 0.66%, while FIIs have bought $6.81 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 96.814, down 0.05% from its previous close of 96.865.
Source:livemint.com
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