Rupee trades lower at 66.78 against US dollar


The Indian rupee on Tuesday weakened for the fourth session against the US dollar, tracking the losses in global markets. Traders are cautious ahead of the start of US Federal Reserve’s two-day policy meeting.

At 9.14am, the home currency was trading at 66.78, down 0.25% from its previous close of 66.62. The rupee opened at 66.72 a dollar and touched a low of 66.79, a level last seen on 28 March.

India’s benchmark Sensex index fell 0.57% or 146.03 points to 25,532.90 points. So far this year, Sensex is down 2.5%.Most Asian currencies were trading lower. Malaysian ringgit was down 0.77%, Thai baht 0.31%, Singapore dollar 0.19%, Indonesian rupiah 0.17% and South Korean won 0.05%. However, Japanese yen was up 0.22%, Philippines peso 0.09% and Taiwan dollar 0.06%.

The Federal Reserve and the Bank of Japan (BoJ) will meet and announce their monetary policy decisions. Analysts expect that the BoJ meeting on Thursday will be reactionary and dependent on the stance laid out at the Fed on Wednesday.

Other data this week includes first-quarter growth figures for the UK, the US and the Eurozone, issued on Wednesday, Thursday and Friday, respectively, Reuters reported.

India’s 10-year bond yield was trading at 7.482%, as compared with its Monday’s close of 7.468%.So far this year, the rupee gained 0.85%, while foreign institutional investors bought $1.58 billion from the local equity market and sold $470.60 million in debt markets.The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.72, down 0.21% from its previous close of 95.116.

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