Date: |
07-10-2016
|
Subject: |
Rupee closes at one-week low against US dollar
|
The rupee on Thursday weakened for the second straight session to close at a week’s low against the US dollar after the local equity markets fell for the second sessions. The better-than-forecast US ISM non-manufacturing data, which increased the probability of a US Federal Reserve rate hike this year, also dampened the sentiments.
The rupee closed at 66.70 against the US dollar, down 0.29% from its previous close of 66.51. The home currency opened at 66.57 a dollar and touched a low of 66.70.
Overnight, US ISM non-manufacturing index for the month of September was at 57.1 versus estimates of 53, the best in a year, according to a Bloomberg report. Traders are cautious ahead of this week’s non-farm payrolls report that could reinforce expectations that the Fed will hike interest rates by December.
India’s benchmark Sensex closed at 28,106.21 points, down 0.41% from its previous close. So far this year, it has gained 7.6%.
The benchmark 10-year government bond yield closed at 6.696% compared with Tuesday’s close of 6.674%. Bond yields and prices move in opposite directions.
The rupee is down 0.81% till date this year, while foreign institutional investors have bought $7.60 billion in equity and $193.80 million in debt markets.
Asian currencies closed lower. The Singapore dollar was down 0.26%, Japanese yen 0.23%, Malaysian ringgit 0.11%, Thai baht 0.11%, China renminbi 0.07%, Chinese offshore 0.06% and Taiwanese dollar 0.05%. However, the South Korean won was up 0.13%, Indonesian rupiah 0.09%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.365, up 0.24% from its previous close of 96.125.
Sources :.livemint.com