The rupee opened at 67.12 per dollar and touched a high and a low of 67.06 and 67.12, respectively
The Indian rupee on Tuesday strengthened against the US dollar, after local equity markets gained over 300 points.
Traders are cautious ahead of the gross domestic product (GDP) data for the June quarter and fiscal deficit data for July on Wednesday. According to Bloomberg analyst estimates, GDP may be at 7.5% compared with 7.9% in the March quarter.
At 2.08pm, the home currency was trading at 67.06 per dollar, up 0.18% from its previous close of 67.18. The rupee opened at 67.12 per dollar and touched a high and a low of 67.06 and 67.12, respectively.
India’s benchmark Sensex index rose 1.17% or 325.72 points to 28,228.38. So far this year, it has gained 8%.
The economy’s prospects for the current financial year are brighter than the previous fiscal year, but growth is still below potential, wrote Reserve Bank of India (RBI) governor Raghuram Rajan in his foreword to the central bank’s annual report for 2015-16. A week before he hands over charge to Urjit Patel, Rajan listed economic growth, curbing inflation and ensuring that banks focus on rate cut transmission and balance sheet clean up as the key “work in progress” areas for the central bank, Mint reported.
The 10-year bond yield was trading at 7.106%, compared with its Monday’s close of 7.123%. Bond yields and prices move in opposite directions.
The rupee is down 1.4% till date this year, while foreign institutional investors (FIIs) have bought $5.78 billion in equity and sold $1.19 billion in debt markets.
Asian currencies were trading mixed ahead of US Federal Reserve vice-chairman Stanley Fischer’s Bloomberg TV interview. South Korean won was up 0.46%, Taiwan dollar 0.11%, while Thai baht and China renminbi were up 0.06% each. However, Japanese yen was down 0.45%, Singapore dollar 0.18%, Malaysian ringgit 0.15% and Philippines peso 0.05%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.794, up 0.23% from its previous close of 95.58.