Rupee opens marginally higher against US dollar


Rupee opens marginally higher against US dollar

Mumbai: The rupee on Monday strengthened marginally against the US dollar, tracking gains in the Asian currencies market.

The home currency opened at 64.07 a dollar. At 9.15am, the rupee was trading at 64.04 a dollar, up 0.06% from its Friday’s close of 64.08.

On Friday, the Reserve Bank of India reported current account deficit (CAD) data that soared to a four-year high of $14.3 billion, or 2.4% of the gross domestic product (GDP), in the June quarter as gold imports picked up ahead of the implementation of the goods and services tax (GST). In the March quarter of 2016-17, CAD was 0.6% of the GDP at $3.4 billion.

Bond yields hit a fresh 15-week high. The 10-year bond yield was at 6.607% compared to its previous close of 6.597%. Bond yields and prices move in opposite directions.

The benchmark Sensex index rose 0.30% or 95.83 points to 32,368.44. So far this year, it has risen over 21.09%.

So far this year, the rupee has gained 6%, while foreign institutional investors (FIIs) have bought $6.61 billion and $20.33 billion in equity and debt, respectively.

Asian currencies were trading higher as dollar weakened after US Secretary of State Rex Tillerson said his country is seeking a peaceful resolution to end the nuclear standoff with North Korea.

South Korean won was up 0.41%, Philippines peso 0.17%, Malaysian ringgit 0.14%, Singapore dollar 0.13%, China renminbi 0.08% and Thai baht 0.05%. However, Japanese yen was down 0.33% and Taiwan dollar 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 91.869, down 0.01% from its previous close of 91.872.


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