Rupee trades higher at 67.34 against US dollar


The Indian rupee on Thursday strengthened against the US dollar, tracking its Asian peers ahead of the Britain referendum.

At 9.10am, the home currency was trading at 67.34, up 0.21% from its previous close of 67.48. The local currency opened at 67.44 a dollar. So far this year, the rupee has weakened 2%.

Asian currencies were trading higher reflecting confidence that the UK will vote to remain a member of the European Union. Malaysian ringgit was up 0.41%, South Korean won 0.22%, Taiwan dollar 0.16%, Indonesian rupiah 0.13%, Philippines peso 0.06% and China renminbi 0.06%. However, Japanese yen was down 0.21% and Thai baht 0.14%.

Capital markets regulator Securities and Exchange Board of India, the Reserve Bank of India and stock exchanges have assured the investors that it is maintaining a close vigil on markets and will take all necessary measures to ensure orderly conditions amid an expected surge in volatility.

Investors have been glued to the Brexit debate amid speculation that a UK vote to leave the 28-nation bloc would fuel global instability and give oxygen to anti-establishment sentiment elsewhere. While bookmakers see only an outside chance of victory for the “Leave” campaign, three of four polls published on Wednesday showed the contest was too close to call and the fourth showed a clear lead for “Remain”, Bloomberg reported.

So far this year, foreign institutional investors (FIIs) have sold $1.80 billion in debt markets. From 17 June to 21 June, FIIs sold $690.9 million in debt.

India’s benchmark Sensex index fell 0.04% or 10 points to 26,755.62. So far this year, Sensex is up 2.48%. Year-to-date, FIIs have bought $2.81 billion from the local equity market.

Meanwhile, India’s 10-year bond yield was trading at 7.477%, compared with Wednesday’s close of 7.476%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.495, down 0.23% from its previous close of 93.716.

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