Rupee trades higher at 66.83 against US dollar


The rupee opened at 66.83 per dollar and touched a high of 66.82, a level last seen on 18 AugustThe Indian rupee on Friday strengthened to a two-week high against the US dollar after foreign institutional investors continued to buy in local equity markets. Traders are cautious ahead of the US payroll data due later on Friday.

The rupee opened at 66.83 per dollar and touched a high of 66.82, a level last seen on 18 August. At 9.12am, the home currency was trading at 66.83 per dollar, up 0.21% from its previous close of 66.96.

Since 1 March till date, foreign institutional investors (FIIs) bought $8.98 billion in local equity markets and Sensex gained 23.5% in this period.

India’s benchmark Sensex index rose 0.36% or 101.95 points to 28,473.86. So far this year, it has gained 9.2%.

The 10-year bond yield was trading at 7.113%, compared with its Thursday’s close of 7.121%. Bond yields and prices move in opposite directions.

The rupee is down 1.1% till date this year, while FIIs have bought $6.11 billion in equity and sold $1.33 billion in debt markets.

Asian currencies were trading mixed as investors waited to see if the upcoming US job data could prod the US Federal Reserve into raising interest rates as soon as September.

South Korean won was up 0.33%, Philippines peso 0.16% and Taiwan dollar 0.05%. However, Malaysian ringgit was down 0.17%, Japanese yen 0.16% and China renminbi 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.671, up 0.01% from its previous close of 95.653.

Friday’s US jobs report is expected to show employers added 180,000 jobs in August, according to the median estimate of 89 economists polled by Reuters.

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