Rupee closes stronger against US dollar

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Mumbai: The Indian rupee closed stronger against the US dollar ahead of a widely expected fed rate hike meeting which concludes on Wednesday. Traders are also awaiting indication for next year’s interest rate path in the meeting.

The rupee closed at 67.45 per US dollar—up 0.14% from its previous close of 67.54. The home currency opened at 67.55 against the US dollar. So far this year, it has fallen 1.9%.

Wholesale inflation eased for the third straight month as it fell to 3.15% in November after subdued demand due to demonetisation led to softening of prices of vegetables and other kitchen staples

India posted a current account deficit (CAD) of $3.4 billion, or 0.6% of gross domestic product (GDP), in the July-September quarter, data released by the Reserve Bank of India (RBI) showed. The CAD in the second quarter was higher than the first quarter (April-June) CAD of 0.1% of GDP but lower than the same quarter (July-September) a year ago at 1.7% of GDP.

India’s retail inflation softened for the fourth consecutive month to 3.63% in November from 4.2% a month ago as a squeeze in cash availability impacted prices of perishable commodities.

India’s benchmark Sensex index closed at 26,602.84 points, down 0.36% or 94.98 points from its previous close. So far this year, it has risen 2%.

The benchmark 10-year government bond yield closed at 6.406%, compared to Tuesday’s close of 6.419%. Bond yields and prices move in opposite directions.

So far this year, foreign institutional investors have bought $4.28 billion in equities and sold $6.34 billion in debt.

Asian currencies closed mixed. South Korean won was down 0.25%, Malaysian ringgit 0.21%, Thai baht 0.07%, Singapore dollar 0.06%, China renminbi 0.04%. However, Indonesian rupiah was up 0.29%, Taiwan dollar 0.13%, China Offshore 0.07%, Japanese yen 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.94— down 0.13% from its previous close of 101.07.

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The Indian rupee was trading little changed against the US dollar as traders are awaiting indication for next year’s interest rate path after two-day Federal Open Market Committee meeting concludes on Wednesday.

At 2pm, the rupee was trading at 67.55 per US dollar—down 0.01% from its previous close of 67.54. The home currency opened at 67.55 against the US dollar. So far this year, it has fallen 2%.

Wholesale inflation eased for the third straight month as it fell to 3.15% in November after subdued demand due to demonetisation led to softening of prices of vegetables and other kitchen staples

India posted a current account deficit (CAD) of $3.4 billion, or 0.6% of gross domestic product (GDP), in the July-September quarter, data released by the Reserve Bank of India (RBI) showed. The CAD in the second quarter was higher than the first quarter (April-June) CAD of 0.1% of GDP but lower than the same quarter (July-September) a year ago at 1.7% of GDP.

India’s retail inflation softened for the fourth consecutive month to 3.63% in November from 4.2% a month ago as a squeeze in cash availability impacted prices of perishable commodities.

India’s benchmark Sensex index was trading at 26,679.45 points, down 0.07% or 18.37 points from its previous close. So far this year, it has risen 2%.

The benchmark 10-year government bond yield was trading at 6.407%, compared to Tuesday’s close of 6.419%. Bond yields and prices move in opposite directions.

So far this year, foreign institutional investors have bought $4.28 billion in equities and sold $6.34 billion in debt.

Asian currencies were trading mixed. South Korean won was down 0.25%, Malaysian ringgit 0.21%, Thai baht 0.07%, Singapore dollar 0.06%, China renminbi 0.04%. However, Indonesian rupiah was up 0.29%, Taiwan dollar 0.13%, China Offshore 0.07%, Japanese yen 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.99— down 0.08% from its previous close of 101.07.