| Date: |
01-04-2016 |
| Subject: |
Rupee closes up 0.21% against US dollar |
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Mumbai: The rupee strengthened for the fifth consecutive session against the dollar on Thursday, helped by continuous dollar inflows into the local equity market.
The rupee has recouped most of the losses it made earlier this year to end just 0.14% lower so far in 2016.
The currency closed at 66.25, up 0.21% from its previous close of 66.39. The rupee had opened at 66.36 and touched a high of 66.18.
Foreign institutional investors (FIIs) have turned net buyers in local equity markets so far this year. FIIs have bought $305 million from local equity and $1.51 billion in debt markets.
India’s benchmark Sensex rose 0.01% to close at 25,341.86. Since 1 March to 28 March, FIIs have bought $3.18 billion equities in the local markets helping the rally in stock markets. Equity indices have gained 10.17% or over 2,350 points during this month.
A better-than-expected Union Budget and the recent dovish statement by US Federal Reserve chief Janet Yellen have fuelled a rally in domestic equities and helped the rupee appreciate for five consecutive sessions.
While March typically sees a rise in dollar inflows, the rupee’s gains outstrip its appreciation in past months. It has gained 3.32% this month, the most in any March since 2004.
Most Asian currencies closed higher. The Malaysian ringgit was up 0.92%, South Korean won 0.67%, Singapore dollar 0.41%, Thai baht 0.23%, China offshore 0.21%, Taiwan dollar 0.17%, China renminbi 0.16%, Indonesian rupiah 0.13%, Japanese yen and Philippines peso were up 0.11% each.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.527, down 0.33% from its previous close of 94.841.
Traders are now eyeing US non-farm payroll and unemployment data on Friday for further cues.
Meanwhile, India’s 10-year bond yield closed at 7.465%—a level last seen on 11 July 2013—compared with its Wednesday’s close of 7.495%. It opened at 7.493 and touched a low of 7.453%—a level last seen on 11 July 2013.
There will be no bank transactions on 1 April due to the annual closure of accounts.
Source : livemint.com
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