Mumbai: The Indian rupee on Monday weakened against the US dollar, tracking losses in the Asian currencies markets. Traders are also cautious ahead of an event-heavy week.

The home currency closed at 67.17, down 0.2% from its previous close of 67.04. The rupee opened at 67.23 per US dollar and touched a low of 67.37.

Most Asian currencies closed lower. South Korean won was down 1.05%, Malaysian ringgit 0.94%, Japanese yen 0.71%, Indonesian rupiah 0.39%, Taiwan dollar 0.34%, China renminbi 0.24%, China offshore 0.22%, Philippines peso 0.15%, Thai baht fell 0.1%, Singapore dollar 0.1%.

The government will issue the gross domestic product (GDP) and fiscal deficit data on 31 May after 5.30pm. Gross value added (GVA) would have grown by 7.2% in the March quarter compared with 7.1% in the December quarter, while GDP growth will be at 7.5% from 7.3% a quarter ago, a Bloomberg poll showed.

India’s benchmark Sensex index rose 0.27%, or 72 points, to 26,725. In the last five days, the Sensex has gained 5.61% or 1,420 points. So far this year, the Sensex has gained 2.33%.

On Wednesday, India, the US and China will announce manufacturing Purchasing Mangers Index, while on Thursday, the US will announce jobs data and crude oil inventories along with factory orders data.

Traders will be also cautious on a possible June rate hike in the US. The US Federal Open Market Committee’s (FOMC) meet scheduled for 14-15 June will decide whether or not to increase key lending rates.

So far this year, the rupee has weakened 1.55%, while foreign institutional investors (FIIs) have bought $2.03 billion from the local equity market and sold $1.16 billion in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.678, up 0.16% from its previous close of 95.521.

Meanwhile, India’s 10-year bond yield closed at 7.461%, as compared with its Friday’s close of 7.471%.

Source:livemint.com