Moneycontrol
Jul 17, 2017 05:31 PM IST | Source: Moneycontrol.com

Rupee ends higher against $ tracking gains in domestic equity mkts, Asian currencies

The Indian rupee on Monday appreciated 0.1 percent to close at over a month’s low of 64.35 to the dollar, tracking gains in domestic equity markets and other Asian currencies.

The Indian rupee on Monday appreciated 0.1 percent to close at over a month’s low of 64.35 to the dollar, tracking gains in domestic equity markets and other Asian currencies.

Intraday, the rupee touched a high and low of 64.33 and 64.40 against the dollar, respectively. Dealers said that some custodian banks were seen selling the dollar throughout the session, most likely on behalf of their foreign portfolio investor clientele who would have looked to invest in Indian equities.

The benchmark Sensex and Nifty indices closed at 32,074.78 and 9,915.95, respectively, 0.2 percent and 0.3 percent higher than their previous closing levels.

The dollar index, which measures the strength of the greenback against a basket of six other major currencies, was trading flat at 95.17. Other Asian currencies like the South Korean won, Taiwan dollar, Indonesian rupiah, China offshore and Thai baht were all trading between 0.1 and 0.4 percent higher against the dollar after China’s gross domestic product data came in better than expected.

So far this year, FPIs have net bought USD 16.1 billion and USD 8.4 billion of Indian debt and equities, respectively, which has led to an appreciation of the Indian rupee and has made it one of the strongest gainers among Asian peers.

Meanwhile, the 10-year benchmark bond yield closed at 6.46 percent, 1 basis point lower than its previous close. Bond prices and yields move in opposite directions.

Indian bonds have remained untouched by the recent sell-off seen in government bonds of countries across the globe. Analysts maintain that India offers one of the highest real interest rates in the world, certainly the highest in Asia, and this will keep investors interested in Indian debt.
Sections
Follow us on
Available On