Indian Rupee trades lower at 66.95 against US dollar


The Indian rupee on Friday weakened for the second consecutive session against the US dollar, tracking losses in the Asian currencies markets. Traders remained cautious ahead of the announcement of a new governor for the Reserve Bank of India (RBI) expected anytime now.

The rupee opened at 66.96 a dollar and touched a low of 66.97, a level last seen on 4 August. At 9.12am, the home currency was trading at 66.95 a dollar, down 0.22% from its previous close of 66.81.

The 10-year bond yield gained for the fourth consecutive session. The 10-year bond yield was trading at 7.148%, a level last seen on 9 August, compared with its Thursday’s close of 7.143%. Bond yields and prices move in opposite directions.

India’s benchmark Sensex index rose 0.04% or 11.87 points to 28,181.87. So far this year, it has gained 7.8%.The rupee is down 1.2% till date this year, while foreign institutional investors (FIIs) have bought $5.73 billion in equity and sold $1.14 billion in debt markets.

Asian currencies were trading lower. South Korean won was down 0.97%, Taiwan dollar 0.61%, Singapore dollar 0.33%, Japanese yen 0.32%, Malaysian ringgit 0.3%, Thai baht 0.28%, Philippines peso 0.28%, China offshore 0.22%, China renminbi 0.18% and Indonesian rupiah fell 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.31, up 0.16% from its previous close of 94.157.

Minutes of the US Federal Reserve’s last meeting struck a more dovish tone than earlier comments by New York Fed President William Dudley, who had flagged the possibility of borrowing costs being increased as soon as next month. US officials have twice cut projections for their rate hike path as economic weakness and volatile financial markets undermine the case for policy to be tightened, Bloomberg reported.

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