Rupee opens marginally higher against US dollar

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Mumbai: The Indian rupee on Wednesday was trading marginally higher against the US dollar tracking gains in the local equity and Asian currencies markets. Traders are cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly policy on 2 August.

The rupee opened at 64.11 a dollar. At 9.15am, the rupee was trading at 64.11 a dollar, up 0.11% from its Tuesday’s close of 64.19.

Of the 15 economists surveyed by Mint, 11 expect the central bank to cut the repo rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points.

The benchmark Sensex index rose 0.15% or 48.81 points to 32,563.75. So far this year, it has risen over 22%.

The 10-year bond yield was at 6.466%, compared to its previous close of 6.469%. Bond yields and prices move in opposite directions. So far this year, the rupee has gained 5.82%, while foreign investors bought $9.09 billion and $17.44 billion in local equity and debt markets, respectively.

Asian currencies were trading higher. Taiwan dollar was up 0.16%, Philippines peso 0.15%, South Korean won 0.15%, Japanese yen 0.11%, China renminbi 0.1%, Japanese yen 0.1%, Malaysian ringgit 0.09%, China Offshore 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.89, down 0.03% from its previous close of 92.863.