Rupee gains against US dollar ahead of CPI data

Mumbai: The Indian rupee strengthened against the US dollar on Thursday , tracking gains in equity market. At 10.08am, the rupee was trading at 68.66 a dollar, up 0.17% from its Wednesday’s close of 68.77. It opened at 68.75 a dollar and touched a high and a low of 68.59 and 68.76, respectively.

Traders are awaiting Consumer Price Index-based (CPI) inflation and Index of Industrial Production data due to be released on 12 July. Retail inflation likely rose to a near two-year high in June, driven by surging oil and food prices, a Reuters poll showed.

According to a 4-9 July Reuters poll of 37 economists, retail prices rose at an annual 5.30% last month. That would be the fastest since July 2016, well above May’s 4.87% and keep inflation above the central bank’s 4% target for an eighth straight month.

The benchmark Sensex gained 0.68%, or 246.91 points, to 36,512.84 points.

Rupee gains against US dollar ahead of CPI data

The 10-year bond yield was trading at 7.83% compared to its previous close of 7.87%. Bond yields and prices move in opposite directions.

So far this year, rupee lost 6.96%, while foreign institutional investors have sold $887.88 million in equity and $8.71 billion in debt, respectively.

Asian currencies were trading mixed. China offshore gained 0.289%, Philippines peso 0.215%, Singapore Dollar 0.212%, Thai baht 0.123% and Hong Kong dollar 0.005%. However, South Korean won lost 0.594%, Taiwan dollar 0.226%, Indonesian rupiah 0.222%, China renminbi 0.154%, Japanese yen lost 0.178% and Malaysian ringgit 0.104%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.72, up 0.01%, from its previous close of 94.71.

source: livemint