Rupee trades flat ahead of key inflation data

Rupee trades flat ahead of key inflation data

Indian rupee was trading little changed against US dollar ahead of consumer and wholesale price inflation data due later today for possible guide to the Reserve Bank of India’s policy meeting next month.

At 9.15am, the currency was trading at 70.51 a dollar, down 0.03% from previous close of 70.50. The home currency opened at 70.50 a dollar.

The government 10-year bond yield was at 7.246% from its Friday’s close of 7.247%. Bond yields and prices move in opposite directions.

Consumer price inflation probably rose 2.17% in December year on year, versus 2.33% in November, according to Bloomberg survey. Wholesale prices inflation is estimated at 4.58%.

Rupee trades flat ahead of key inflation data

The benchmark Sensex index rose 0.21% to 36085.52 points in early trade. Year to date, it is up 0.16%.

So far this year, the rupee has declined 1%, while foreign investors have sold $238.20 million and $77.50 million in the equity and debt markets respectively.

Asian currencies were trading lower. South Korean won was down 0.61%, Philippines peso 0.32%, Indonesian rupiah 0.3%, Taiwan dollar 0.22%, Thai Baht 0.07%, Hong Kong dollar 0.05%. However, Japanese yen was up 0.33%, while China renminbi advanced 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.597, down 0.08% from its previous close of 95.67

source: livemint