Mumbai: The rupee on Wednesday opened marginally higher but soon erased most of the gains and was trading little change against the US dollar.
The home currency opened at 65.38 a dollar and touched a high and a low of 65.35 and 64.44 respectively. At 9.15am, the rupee was trading at 65.44 a dollar, up 0.02% from its Tuesday’s close of 65.45.
The 10-year bond yield was at 6.67%, compared to its previous close of 6.669%. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.59% or 185.48 points to 31,785.24. So far this year, it has risen over 19.89%.
So far this year, the rupee has gained 4.4%, while foreign institutional investors have bought $6.39 billion and $20.36 billion in equity and debt, respectively.
Asian currencies were trading lower amid expectations that US President Donald Trump and Republican leaders will reveal their tax plan. According to a Bloomberg report, Trump will unveil a 35% individual tax rate, and the rate on corporations would be set at 20%, down from the current 35%.
Malaysian ringgit was down 0.29%, Thai baht 0.23%, South Korean won 0.17%, Japanese yen 0.16%, Singapore dollar 0.07%, Philippines peso 0.06%. However, China renminbi was up 0.07%, Hong Kong dollar 0.05%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.08, up 0.11% from its previous close of 92.966.