Mumbai: Indian rupee on Thursday recovered from its fresh six-month low and closed stronger against the US dollar after local equity markets gained.
The rupee closed at 65.51 against the dollar, up 0.31% from its Wednesday’s close of 65.71. In the morning trade, the home currency opened at 65.79 and touched a low of 65.89—a level last seen on 14 March.
Benchmark Sensex index rose 0.39%, or 122.67 points, to closed at 31,282.48. So far this year, it the index has gained over 17.50%.
The 10-year bond yield closed at 6.641%, compared to its previous close of 6.667%. Bond yields and prices move in opposite directions.
According to a PTI report, the finance ministry and Reserve Bank of India are scheduled to meet on Thursday to decide on the borrowing calendar for second half of fiscal year 2018.
“The government’s borrowing plan is critical as it will be the first official word indicating what the government has in mind in terms of fiscal stimulus”, a Bloomberg report said quoting Vivek Rajpal, a Singapore-based rates strategist at Nomura Holdings.
So far this year, the rupee has gained 3.7%, while foreign institutional investors have bought $6.13 billion and $20.26 billion in equity and debt, respectively.
Asian currencies were trading lower as dollar gained for fourth sessions before the release of US economic growth data forecast to back the case for higher interest rates.
South Korean won was down 0.72%, China renminbi 0.44%, China offshore 0.43%, Indonesian rupiah 0.36%, Thai baht 0.28%, Taiwan dollar 0.23%, Malaysian ringgit 0.21%, Singapore dollar 0.17%. However, Philippines peso was up 0.12% and Japanese yen was up 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.464, up 0.11% from its previous close of 93.36.