Indian Rupee on Friday pared all the morning gains and weakened past 65-mark to hit six week low against the US dollar following losses in global equity and currencies markets amid uncertainty surrounding Brazilian and US politics.
The rupee touched a low of 65.02—a level last seen on 6 April. At 12.28pm, the rupee weakened to 65.01, down 0.21% from its previous close of 64.85. Earlier in morning trade, It opened at 64.75 and strengthened as much as 0.25% or 64.69 a dollar.
The benchmark Sensex index fell 0.18% or 53.77 points to 30,375.47. So far this year, it has risen 13%.
So far this year, the rupee has gained 5.5%, while foreign investors bought $7.12 billion and $9.47 billion in local equity and debt markets, respectively.
The 10-year bond yield was trading at 6.696% compared to its previous close of 6.677%. Bond yields and prices move in opposite directions.
Asian currencies were trading lower. Indonesian rupiah was down 0.3%, South Korean won 0.21%, Philippines peso 0.13%, Taiwan dollar 0.11%, China offshore 0.06% and China renminbi 0.05%. However, Japanese yen was up 0.31%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.834, down 0.05% from its previous close of 97.879.
The goods and services tax (GST) Council on Thursday backed the 1 July deadline for rolling out the unified indirect tax that will help create a single national market, and ensured that items of mass consumption bear the least tax burden.