Rupee trades higher at 67.16 against US dollar


The rupee opened at 67.13 a dollar and touched a high of 67.06, a level last seen on 17 JuneThe Indian rupee on Monday strengthened against the US dollar, after local equity markets gained 470 points. Gains in the global equity and currencies markets also helped the currency. This was the tenth out of 13 trading sessions when the rupee is trading higher.

At 2pm, the home currency was trading at 67.16, up 0.32% from its previous close of 67.37. The local currency opened at 67.13 a dollar and touched a high of 67.06, a level last seen on 17 June.

India’s benchmark Sensex index rose 1.71%, or 464.62 points, to 27,591.52. So far this year, Sensex has gained 5.6%.

Most of the Asian currencies were trading higher, bolstered by election results in Japan and Australia and shrugging off concerns that a strong US jobs report might push the US Federal Reserve closer to hiking rates.

South Korean won was up 1.3%, Malaysian ringgit 1.05%, Indonesian rupiah 0.54%, Taiwan dollar 0.28%, Thai baht 0.2%, while China renminbi and China offshore spot rose 0.05% each. However, Japanese yen was down 1.52%, Philippines peso 0.25% and Singapore dollar fell 0.2%.

The government will issue the Index of Industrial Production (IIP) and Consumer Price Index (CPI) based inflation data for May and June, respectively, on 12 July, while Wholesale Price Index (WPI) based inflation data for June on 14 July.

According to Bloomberg analyst estimates, IIP for May will be -0.4% compared to -0.8% a month ago, while CPI will be at 5.79% versus 5.76% last month. WPI will be at 1.3% in June month from 0.79% in May.

So far this year, the rupee is down 1.5%, while foreign institutional investors (FIIs) have bought $2.92 billion in equity and sold $1.81 billion in debt markets.

Meanwhile, India’s 10-year bond yield was trading at 7.382%, compared with Friday’s close of 7.385%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.655, up 0.37% from its previous close of 96.302.

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