Rupee opens little changed against US dollar


Mumbai: The rupee on Friday was trading little changed against the US dollar in opening trade.

The rupee opened at 63.95 a dollar. At 9.15am, the rupee was trading at 63.93 a dollar, down 0.04% from its Thursday’s close of 63.91.

India’s economic growth unexpectedly slowed to 5.7% in the June quarter, the slowest pace in three years, underlining the disruption caused by the uncertainty related to the rollout of the goods and services tax (GST) even as the Indian economy is struggling to recover from a shock demonetisation.

A survey of economists by Reuters saw gross domestic product (GDP) growth picking up by 6.6% in the June quarter. GDP grew 6.1% in the preceding three months.

The benchmark Sensex index rose 0.27% or 85.97 points to 31,816.46. So far this year, it has risen over 19%.

The 10-year bond yield was at 6.5% compared to its previous close of 6.525%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 6.3%, while foreign institutional investors (FIIs) bought $7.09 billion and $19.86 billion in equity and debt markets, respectively.

Asian currencies were trading higher. South Korean won was up 0.46%, China offshore 0.25%, Taiwan dollar 0.22%, China renminbi 0.17% and Philippines peso 0.11%. However, Malaysian ringgit was down 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.634, down 0.04% from its previous close of 92.668.

US non-farm payrolls data for August is due Friday, along with unemployment and earnings numbers, and the Markit US PMI. US employment probably increased by 180,000 in August, in line with this year’s monthly average, while the jobless rate held at 4.3%, economists forecast.


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