Rupee gains against US dollar in opening trade

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Mumbai: The Indian rupee strengthened against the US dollar on Monday, after global markets gained and US treasury yield steadied.

The local currency opened at 64.70 a dollar. At 9.15am, the home currency was trading at 64.66, up 0.12% from its previous close of 64.73.

Traders will keep an eye on gross domestic product (GDP) data for the December quarter, to be released on Wednesday. According to Bloomberg analysts, GDP may rise 6.9% from 6.3% in the previous quarter.

India’s benchmark Sensex index rose 0.32% or 108.67 points to 34,250.82. So far this year, Sensex has risen 0.5%.

Yields on 10-year government bonds was at 7.651% compared to its Friday’s close of 7.670%. Bond yields and prices move in opposite directions.

Year to date, the rupee weakened 1.1%, while foreign investors have bought $547.80 million and $1.59 billion in equity and debt markets, respectively.

Asian currencies were trading higher. Traders are cautious as Federal Reserve chairman Jerome Powell will speak before the House financial services committee on Tuesday and the Senate banking committee two days later to give his Humphrey-Hawkins testimony, Bloomberg reported.

South Korean won was up 0.5%, Japanese yen 0.36%, China renminbi 0.3%, Malaysian ringgit 0.26%, China offshore 0.19%, Thai baht 0.12%, Indonesian rupiah 0.11%, Singapore dollar 0.11% and Philippines peso rose 0.09%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 89.714, down 0.19% from its previous close of 89.883.livemint