Yields on 10-year government bonds were at 7.747% compared to Tuesday’s close of 7.779%. Photo: Bloomberg
Mumbai: The Indian rupee erased all the morning gains and weakened against US dollar on Wednesday after local equity markets fell for the sixth session amid a widening probe into the Punjab National Bank’s $2 billion fraud.
At 1.50pm, the rupee was trading at 64.99, down 0.05% from its previous close of 65.11. The home currency opened at 64.88 and touched a high and a low of 64.87 and 65.01 a dollar respectively.
The local markets were under pressured after many bank official summoned by the Serious Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) seeking explanation on loans given to companies linked to Nirav Modi and his uncle Mehul Choksi.
India’s benchmark Sensex index fell 0.55%, or 184.80 points, to 33,139.40. So far this year, Sensex has fallen 2.4%.
Traders will also monitor the ongoing risk-off sentiment in global markets following the resignation of US economic adviser Gary Cohn amid dispute over trade tariffs.
Yields on 10-year government bonds were at 7.747% compared to Tuesday’s close of 7.779%. Bond yields and prices move in opposite directions.
Year to date, the rupee weakened 1.8%, while foreign investors have bought $172.80 million and $877.50 billion in equity and debt markets, respectively.
Asian currencies were trading higher. South Korean won was up 0.78%, Japanese yen 0.4%, Taiwan dollar 0.2%, Indonesian rupiah 0.14% and Malaysian ringgit rose 0.06%. However, China renminbi was down 0.22%, China offshore 0.18% and Thai baht fell 0.17%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 89.509, down 0.12% from its previous close of 89.618.
