Rupee opens lower against US dollar, heads for biggest weekly drop in 7 weeks

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Mumbai: The Indian rupee on Friday weakened against the US dollar in the opening trade, headed for the biggest weekly drop in seven weeks.

The rupee opened at 65.07 a dollar. At 9.15am, the home currency was trading at 65.08 against the dollar, down 0.23% from its Thursday’s close of 64.94. For the week, it declined 0.8%, its biggest weekly drop since 22 September.

The government will issue consumer price and wholesale price based inflation data for October on 13 November and 14 November respectively. According to Bloomberg analyst estimates, Consumer Price Index expected to be at 3.4% from 3.28% a month ago while Wholesale Price Index will be at 3.01% versus 2.6% a month ago.

The government will also issue Index of Industrial Production data for September on 10 November and Bloomberg analysts expect that it will be at 3.8% from 4.3% a month ago.

The 10-year bond yield was at 6.938% compared to its previous close of 6.931%. Bond yields and prices move in opposite directions.

The benchmark Sensex index rose 0.09% or 28.29 points to 33,279.22 points. So far this year, it has gained 24.76%.

So far this year, the rupee has gained 4.3%, while foreign institutional investors have bought $7.41 billion and $22.63 billion in equity and debt, respectively.

Asian currencies were trading little changed as uncertainty about the progress of US tax cuts. Malaysian ringgit was up 0.28%, Japanese yen 0.08%, Thai baht 0.06%, Taiwan dollar 0.04%, China offshore 0.04%. However, South Korean won was down 0.12%, Singapore dollar 0.04%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.494, up 0.05% from its previous close of 94.444.