Foreign investors’ buying spree strengthens rupee against dollar

By Rob 0

Mumbai: The Indian rupee on Monday strengthened further against the US dollar after foreign investors continued to buy in local equity and debt markets.

The rupee opened at 65.39 a dollar. At 9.15am, the home currency was trading at 65.38, up 0.14% from its Friday’s close of 65.48.

So far this year, rupee gained 3.9% while foreign institutional investors have bought $ 3.98 billion and $ 1.23 million from local equity and debt markets, respectively.

The benchmark Sensex index fell 0.02% or 5.39 points to 29,643.60. So far this year, it has risen 11%.

The 10-year bond yield was trading at 6.868%, compared to its Friday’s close of 6.863%. Bond yields and prices move in opposite directions.

Asian currencies were trading higher after dollar index weakened to five-month low after a measure of US inflation expectations dropped to a record low.

South Korean won was up 0.61%, Thai Baht 0.37%, Taiwan dollar 0.36%, Singapore dollar 0.24%, Indonesian rupiah 0.16%, Japanese yen 0.13%, Philippines peso 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.16, down 0.14% from its Monday’s close of 100.30.

First Published: Mon, Mar 20 2017. 09 21 AM IST