Indian Rupee Closes Little Changed Against Us Dollar
The Indian rupee on Tuesday erased most of the gains and closed little changed against the US dollar as the traders avoided taking large positions ahead of the release of key macro economic data.
The rupee closed at 68.18 a dollar, up 0.03% from Monday’s close of 68.21. The rupee opened at 68.09 a dollar and touched a high and a low of 67.99 and 68.21 respectively. So far this year it fell 0.3%.
India’s benchmark Sensex index was trading at 26,893.23 points, up 0.62% or 166.38 points from its previous close. So far this year it gained 1%.
The government will issue index of industrial production (IIP) and consumer price inflation (CPI) data for November and December on 12 January. According to Bloomberg analyst estimates, IIP will be at -2.2%, while CPI will be at 3.5%. The government will also release wholesale price inflation data on 16 January.
The 10-year bond yield closed at 6.398%, compared to Monday’s close of 6.397%. Bond yields and prices move in opposite directions.
So far this year, foreign institutional investors sold $285.56 million in equity while $112.26 million buy in debt.
Most of the Asian currencies were trading higher as dollar index dropped amid narrowing US yield curves.
South Korean won was up 1.15%, Taiwan dollar 0.53%, Indonesian rupiah 0.41%, China renminbi 0.21%, Philippines peso 0.17%, Thai Baht 0.14%, Japanese yen 0.1%. However, China Offshore spot was down 0.14%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.85—down 0.1% from its previous close of 101.93.