The Indian rupee on Thursday opened higher but soon erased most of the gains and was trading little changed against the US dollar from its previous close.
The local currency opened at 67.35 a dollar and touched a high and a low of 67.32 and 67.45, respectively. At 9.10am, the home currency was trading at 67.45, up 0.01% from its previous close of 67.46.
India’s benchmark Sensex index rose 0.24% or 64.52 points to 27,231.39. So far this year, Sensex is up 4%.
Most of the Asian currencies were trading higher. South Korean won was up 0.7%, Malaysian ringgit 0.57%, Japanese yen 0.42%, Taiwan dollar 0.22%, Indonesian rupiah 0.11%, China renminbi 0.07%, Philippines peso 0.05%.
So far this year, the rupee is down 1.9%, while foreign institutional investors (FIIs) have bought $2.94 billion in equity and sold $1.83 billion in debt markets.
Meanwhile, India’s 10-year bond yield was trading at 7.37%, compared with Tuesday’s close of 7.39%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.102, up 0.05% from its previous close of 96.053.
Federal Reserve policymakers last month were increasingly worried about the US economy because of a sharp slowdown in job growth and the potential threat posed by a vote in Britain over leaving the European Union.
Minutes of the 14-15 June discussions released Wednesday show a general consensus to hold off on further rate hikes until data could show whether or not the weak job growth in May was a temporary aberration. Policymakers also agreed they needed to wait for the outcome of the British vote, Reuters reported.