Mumbai: The Indian rupee on Tuesday closed over fresh 20-month high against the US dollar after local equity markets gained over 280 points.
The rupee closed at 64.2750 a dollar—a level last seen on 11 August 2015, up 0.25% from its Monday’s close of 64.44. The rupee opened at 64.41 a dollar and touched a high of 64.21, a level last seen on 7 April.
The benchmark Sensex index rose 0.97% or 287.40 points to closed at 29,943.24. So far this year, it has risen 12%.
Global markets gained in the wake of French elections. Emmanuel Macron advanced as the favorite in the presidential runoff, easing concerns that France will leave the euro currency bloc.
With anxiety over the French elections fading, traders may also be showing relief in the absence of provocations from North Korea and signs of stability in Chinese markets, Bloomberg reported.
Traders are cautious before President Donald Trump releases a tax reform plan Wednesday aimed at spurring growth in the US economy.
So far this year, the rupee has gained 5.5%, while foreign investors bought $6.52 billion and $7.17 billion in local equity and debt markets, respectively.
The 10-year bond yield closed at 6.937% compared to its previous close of 6.942%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher. Malaysian ringgit was up 0.64%, Taiwan dollar 0.46%, South Korean won 0.41%, Indonesian rupiah 0.2%, Philippines peso 0.18%. However, Japanese yen was down 0.61%, Thai Baht 0.11%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.048, down 0.04% from its previous close of 99.092.