Mumbai: The Indian rupee strengthened against the US dollar on Thursday, tracking gains in the local equity and Asian currencies market.
At 2pm, the home currency was trading at 63.90, up 0.31% from its previous close of 64.09. The local currency opened at 63.94 and touched a high of 63.87 a dollar.
India’s benchmark Sensex index rose 0.61% or 209.25 points to 34,365.20. So far this year, Sensex has risen 0.87%.
The 10-year government bond yield gained nearly 11 basis points after surging US treasury yield worried traders that it will curb inflows into the Asian nation’s sovereign debt. Higher international crude oil prices also weighted the sentiment.
India’s 10-year bond yield was at 7.6% from its Wednesday’s close of 7.5%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has fallen 0.14%, while foreign institutional investors have bought $1.13 billion from local equity and $2.11 billion in debt markets.
Asian currencies were trading higher. Taiwan dollar was up 0.71%, Malaysian ringgit 0.64%, South Korean won 0.52%, Indonesian rupiah 0.51%, Japanese yen 0.38%, Thai baht 0.09%, Philippines peso 0.09% and China offshore 0.09%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 88.92, down 0.23% from its previous close of 89.121.livemint