Mumbai: The Indian rupee strengthened against the US dollar on Thursday, tracking gains in equity market. At 2.01pm, the rupee was trading at 68.54 a dollar, up 0.34% from its Wednesday’s close of 68.77. It opened at 68.75 a dollar and touched a high and a low of 68.51 and 68.76, respectively.
Traders are awaiting Consumer Price Index-based (CPI) inflation and Index of Industrial Production data due to be released later in the day. Retail inflation likely rose to a near two-year high in June, driven by surging oil and food prices, a Reuters poll showed.
According to a 4-9 July Reuters poll of 37 economists, retail prices rose at an annual 5.30% last month. That would be the fastest since July 2016, well above May’s 4.87% and keep inflation above the central bank’s 4% target for an eighth straight month.
The benchmark Sensex gained 0.98%, or 354.47 points, to 36,620.40 points.
The 10-year bond yield was trading at 7.82% compared to its previous close of 7.87%. Bond yields and prices move in opposite directions.
So far this year, rupee lost 6.83%, while foreign institutional investors have sold $887.88 million in equity and $8.71 billion in debt, respectively.
Asian currencies were trading mixed. China offshore gained 0.505%, China renminbi 0.207%, Thai baht 0.198%, Philippines peso 0.178%, Singapore Dollar 0.154%,and Hong Kong dollar 0.010%. However, South Korean won lost 0.515%, Japanese yen lost 0.294%, Taiwan dollar 0.167%, Malaysian ringgit 0.074% and Indonesian rupiah 0.056%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.66, down 0.06%, from its previous close of 94.71.