Mumbai: The rupee on Thursday weakened marginally against the US dollar, after local equity market fell for the second session.
The local currency closed at 64.93 a dollar, down 0.15% from its previous close of 64.84. The home currency opened at 64.93 a dollar and touched a high and a low of 64.81 and 64.98, respectively.
India’s benchmark Sensex index fell 0.44%, or 150.20 points, to 33,685.54. So far this year, Sensex has fallen 1%.
The rupee also came under pressure after government data showed that India’s trade deficit widened to $12 billion in February from $8.90 billion last year same month. Merchandise exports for February were $25.8 billion, while imports were $37.8 billion, Reuters reported.
The 10-year bond yield fell after BTV reported that the government started talks with the Reserve Bank of India on new framework for foreign investment cap in government bonds.
Yields on 10-year government bonds fell at 7.638% compared to Wednesday’s close of 7.685%. Bond yields and prices move in opposite directions.
Year to date, the rupee has weakened 1.7%, while foreign investors have bought $1.39 million in equity and sold $137.80 million in debt markets.