Rupee opens lower against US dollar


Mumbai: The Indian rupee on Friday weakened against the US dollar, tracking losses in its Asian peers.

The rupee opened at 65.02 a dollar. At 9.15am, the home currency was trading at 65.06 against the dollar, down 0.35% from its Thursday’s close of 64.82.

The BSE benchmark index rose 0.44%, or 145.43 points, to 33,292.56. So far this year, the Sensex has gained 25%. The local equity markets gained for the fifth consecutive session and surged nearly 2.6% or 800 points in this period.

The 10-year bond yield was at 6.811% compared to its previous close of 6.811%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 4.79%, while foreign institutional investors have bought $5.56 billion and $22.29 billion in equity and debt, respectively.

Asian currencies were trading lower as the dollar climbed to a three-month high after the US house passed a budget resolution on tax reforms and as speculation mounted a hawkish candidate may lead the Federal Reserve.

European Central Bank announced that it will be buying bonds for a longer time, even as it plans to halve monthly purchases, Bloomberg reported.

South Korean won was down 0.33%, Indonesian rupiah 0.26%, Malaysian ringgit 0.15%, Thai baht 0.15%, Japanese yen 0.14%, Taiwan dollar 0.12%, Singapore dollar 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.795, up 0.20% from its previous close of 94.612.