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Rupee closes stronger against US dollar at 67.79 |
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Mumbai: The Indian rupee on Friday closed 0.64% higher, its steepest gain since 7 October 2015, against the US dollar on improved fiscal deficit.
Gains in the local equity markets, which jumped over 400 points, and Asian currencies after the Bank of Japan (BOJ) adopted negative interest rates also boosted sentiment.
The rupee closed at 67.79 a dollar—a level last seen on 22 January, from its previous close of 68.23. The local currency opened at 68.11 a dollar and touched a high of 67.78—a level last seen on 25 January.
India’s fiscal deficit was Rs.4.88 trillion during April-December, or 87.9% of the full-year target, according to government data showed. The deficit was 100.2% of the full year target during the same period a year ago.
BOJ unexpectedly cut a benchmark interest rate below zero on Friday, stunning investors with a move aimed at shielding the country’s sluggish economy from volatile markets and slowing global growth, Reuters reported.
India’s benchmark equity index, BSE Sensex, closed at 24,870.69 points, up 1.64% or 401.12 points. So far this year, the Sensex has lost over 4.77%.
Most Asian currencies closed higher. Malaysian ringgit was up 1.39%, South Korean won 0.79%, Taiwan dollar 0.79%, Indonesian rupiah 0.69%, Singapore dollar 0.34%, Thai baht 0.34%, China offshore 0.31%, Philippines peso 0.09%. However, Japanese yen fell 1.7%.
Year-to-date, the rupee has weakened 2.41% and is the worst performing currency in Asia, while foreign portfolio investors sold $1.76 billion from local equities and bought $121.30 million in debt.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.083, up 0.59% from its previous close of 98.51.
Meanwhile, the yield on India’s current 10-year benchmark bond closed at 7.783% compared with its Thursday’s close of 7.805%. Bond yields and prices move in opposite directions.
Source : livemint.com
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