Rupee exchanges lower at 67.44 against US dollar



Mumbai: The Indian rupee on Tuesday weakened against the US dollar, tracking the losses in the local equity and Asian currencies market.

At 2pm, the home currency was trading at 67.44, down 0.26% from its previous close of 67.32. The local currency opened at 67.35 a dollar and touched a high and a low of 67.32 and 67.44, respectively.

India’s benchmark Sensex index fell 0.46% or 126.38 points to 27,152.38. So far this year, Sensex is up 4%.

Most Asian currencies dropped, led by South Korea’s won, as investors bought the yen and other safe haven assets ahead of the US payroll data.

South Korean won was down 0.73%, Malaysian ringgit 0.51%, Philippines peso 0.39%, Indonesian rupiah 0.39%, Thai baht 0.27%, Taiwan dollar 0.25%, Singapore dollar 0.23%, China Offshore 0.13% However, Japanese yen was up 0.84%.

Investors hope that the central banks will provide stimulus to offset a likely downturn triggered by Brexit. The Bank of England has indicated it could provide stimulus measures to support the economy in the coming months. Many investors also expect the European Central Bank and the Bank of Japan to expand their monetary easing, Reuters reported

So far this year, the rupee is down 1.91%, while foreign institutional investors (FIIs) have bought $2.92 billion in equity and sold $1.86 billion in debt markets.

Meanwhile, India’s 10-year bond yield was trading at 7.405%, compared with Monday’s close of 7.425%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.549, down 0.1% from its previous close of 95.649.

Indian markets will be closed on 6 July on account of Ramzan. The US markets were closed on Monday on account of the US Independence Day.