Mumbai: The Indian rupee on Friday weakened against the US dollar, tracking losses in its Asian peers.
The home currency ended at 65.05 against the dollar, down 0.35% from its Thursday’s close of 64.82. The rupee opened at 65.02 a dollar and touched a high and a low of 64.97 and 65.11, respectively.
Asian currencies were trading lower as the dollar climbed to a three-month high after the US house passed a budget resolution on tax reforms and as speculation mounted a hawkish candidate may lead the Federal Reserve.
European Central Bank announced that it will be buying bonds for a longer time, even as it plans to halve monthly purchases, Bloomberg reported.
South Korean won was down 0.51%, Thai baht 0.2%, Singapore dollar 0.19%, Malaysian ringgit 0.18%, China renminbi 0.17%, Indonesian rupiah 0.16%, Japanese yen 0.14%, Taiwan dollar 0.11%. However, Philippines peso was up 0.09%.
The BSE benchmark index rose 0.03%, or 10.09 points, to closed at 33,157.22. So far this year, the Sensex has gained 25%. The local equity markets gained for the fifth consecutive session and surged nearly 2.6%, or 800 points, in this period.
Bond yields hit near six-month high. The 10-year bond yield closed at 6.834% compared to its previous close of 6.811%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 4.5%, while foreign institutional investors have bought $5.56 billion and $22.29 billion in equity and debt, respectively.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.95, up 0.36% from its previous close of 94.612.