Mumbai: The Indian rupee on Wednesday came off the day’s lows against the US dollar amid expectations of a steady outflow of dollars from local equity and debt markets.
At 2.46pm, the home currency was trading at 68.52, down 0.2% from its previous close of 68.38. The local currency opened at 68.52 a dollar and touched a low of 68.67—a level last seen on 4 September 2013.
Foreign institutional investors (FIIs) have been sellers for the 10th consecutive session and fifth consecutive session, respectively in equity and debt markets. The Sensex index rose 0.92%, or 221.19 points, to 23,413.16. So far this year, the Sensex has fallen 11.5%.
“It all now depends on what the Reserve Bank of India does in the market. If the current momentum continues, it is quite possible that rupee will hit its all-time low. We see a range of 68.50-68.80 for the session, Ashutosh Raina, head of forex trading HDFC Bank.
The Indian currency is just 0.4% away from its all-time low of 68.85 a dollar hit in August 2013. Since January, the rupee has lost 3.55% on the back of $2.32 billion outflow from the local equity markets.
Weak Asian currencies continued to weigh on the rupee. Malaysian ringgit was down 1.54%, South Korean won 0.85%, Indonesian rupiah 0.7%, Taiwan dollar 0.66%, Philippines peso 0.31%, China offshore spot 0.14%, China renminbi 0.14%, Singapore dollar 0.07%. However, Japanese yen was up 0.32%, Thai baht 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.666, down 0.21% from its previous close of 96.868.
Meanwhile, the yield on India’s 10-year benchmark bond was trading at 7.797% against Tuesday’s close of 7.783%. Bond yields and prices move in opposite directions.
Source:.livemint.com
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