The Indian rupee on Thursday was trading slightly higher against the US dollar in mid-day trade.

At 2.10pm, the rupee was trading at 66.71 against the US dollar, up 0.02% from its previous close of 66.72. The home currency opened at 66.73 against the US dollar. So far this year, it fell 0.83%.

India’s benchmark Sensex index was trading at 27,513.17 points, down 0.05% or 14.05 points from its previous close. So far this year, it has gained 5.3%.

Asian currencies were trading mixed ahead of the US presidential election next week, with polls suggesting a tight race between Donald Trump and Hillary Clinton.

South Korean won was up 0.88%, Japanese yen 0.31%, Taiwan dollar 0.12% and Malaysian ringgit 0.04%. However, Indonesian rupiah was down 0.08%, China renminbi 0.08%, Thai baht 0.07% and China offshore 0.05%.

The US Federal Reserve kept interest rates unchanged on Wednesday in its last policy decision before the US election, but signalled it could go for a hike in December as the economy gathers momentum and inflation picks up. The US central bank said the economy had gained steam and job gains remained solid. Policymakers also expressed more optimism that inflation was moving toward their 2% target, Reuters reported.

The benchmark 10-year government bond yield was trading at 6.82%, a level last seen on 29 September, compared to Wednesday’s close of 6.815%. Bond yields and prices move in opposite directions.

Foreign institutional investors (FIIs) have sold $764.30 million in debt and bought $6.75 billion in equity till date this year.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.21, down 0.20% from its previous close of 97.398.

Sources :livemint.com