Rupee trades lower at 67.67 against US dollar

Mumbai: The Indian rupee on Tuesday weakened for the ninth consecutive session against the US dollar, after foreign institutional investors (FIIs) continued to liquidate their investment in debt markets. The fall in Asian currencies markets as fears of an early interest rate hike in June also dampened the sentiments.

The rupee opened at 67.64 per US dollar and touched a low of 67.68, a level last seen on 2 March. At 9.10am, the home currency was trading at 67.67, down 0.26% from its previous close of 67.50. So far this year, rupee fell 2.23%.

FIIs have sold nearly $860 million in debt over the last nine trading sessions and have been sellers on all but one trading session over this period. So far this year, FIIs have remained net sellers of Indian debt and have offloaded $903.14 million in domestic bonds.

Asian currencies were trading lower. Malaysian ringgit was down 0.73%, Indonesian rupiah 0.55%, South Korean won 0.55%, Singapore dollar 0.24%, Thai baht 0.22%, Japanese yen 0.16%, Philippines peso 0.15% and Taiwan dollar 0.05%.

India’s benchmark Sensex index rose 0.1% or 20 points to 25,280. So far this year, Sensex is down 3.2%. Year-to-date, FIIs have bought $2.07 billion from the local equity market.

India’s 10-year bond yield was trading at 7.46%, as compared with its Monday’s close of 7.466%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.344, up 0.12% from its previous close of 95.231.

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