The Indian rupee on Monday weakened against the US dollar, tracking losses in Asian currencies and on India’s widening trade deficit. The home currency opened at 65.16, down 0.23% from its previous close of 65.01. The benchmark Sensex index rose 0.09% to 28,093.54 points.
Most of the Asian currencies were trading lower. Malaysian ringgit was down 0.74%, Taiwan dollar 0.53%, Indonesian rupiah 0.5%, Thai baht 0.35%, Philippines peso 0.23%, South Korean won 0.13%, Japanese yen 0.07%.
Data released by the commerce ministry on Friday showed both exports and imports contracted 10.3% in the month, leading to a trade deficit of $12.8 billion, an eight-month high.
The yield on India’s 10-year benchmark bond was trading at 7.747% compared with its Friday’s close of 7.744%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 3%, while foreign institutional investors have bought $6.92 billion from local equity and $6.29 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.679, up 0.17% from its previous close of 96.52.
US industrial output advanced at its strongest pace in eight months in July in another bullish sign for third-quarter economic growth that boosts the prospects of a rate hike next month. Industrial output increased 0.6% in July, far above the revised 0.1% gain in June, due to a strong gain in automobile manufacturing, Reuters reported.
Source:livemint.com
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