Mumbai: The Indian rupee on Tuesday was trading little changed against the US dollar in opening trade.
The rupee opened at 64.06 a dollar. At 9.15am, the rupee was trading at 64.05 a dollar, up 0.01% from its Monday’s close of 64.06.
India’s growth trajectory could be even stronger than previously reported, providing a confidence boost for the world’s fastest growing emerging market. Revisions to industrial production and wholesale price index (WPI) released on Friday suggest gross domestic product (GDP) for fiscal 2016 and 2017 may have been substantially understated, according to Bloomberg report.
Based on press reports, India’s statistical agency is poised to revise the GDP series in its May release. If they do, Bloomberg Intelligence Economics calculates GDP growth for fiscal 2016 will be revised to 8.3% from 8%, and for 2017 to 8% from 7.1%. The government will issue GDP data for the first quarter on 31 May.
The benchmark Sensex index rose 0.22% or 51.79 points to 30,373.91. So far this year, it has risen 14%.
So far this year, the rupee has gained 6%, while foreign investors bought $6.71 billion and $8.61 billion in local equity and debt markets, respectively.
The 10-year bond yield was trading at 6.81% compared to its previous close of 6.812%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher. South Korean won was up 0.44%, Malaysian ringgit 0.36%, Japanese yen 0.28%, Thai baht 0.14%, China offshore 0.05% and Hong Kong dollar rose 0.04%. However, Philippines peso was down 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.834, down 0.07% from its previous close of 98.911.