Mumbai: The Indian rupee on Tuesday was trading little changed against the US dollar ahead of the Reserve Bank of India’s (RBI) policy review due at 11am.
At 9.09am, the home currency was trading at 64.05, down 0.02% from its previous close of 64.04. The local unit opened at 64.09 per dollar.
Most of the Asian currencies were trading lower. Malaysian ringgit was down 0.43%, South Korean won 0.36%, Singapore dollar 0.17%, Thai baht 0.13% and Philippines peso 0.11%.
The benchmark Sensex index rose 0.12% to 28,221.62 points.
The RBI is likely to leave interest rates unchanged in its monetary policy review on Tuesday, preferring to keep its powder dry until the US Federal Reserve raises borrowing costs from near-zero levels.
The central bank may also want to see how the monsoon plays out in August and September before it cuts the repurchase rate, the rate at which it lends money to commercial banks, for a fourth time this year.
The yield on India’s 10-year benchmark bond was trading at 7.8% compared with its Monday’s close of 7.815%. Bond yields and prices move in opposite directions.
Brent crude has fallen 12 out of 17 sessions. Since 10 July, the Brent has fallen 15%.
Since the beginning of this year, the rupee has lost 1.56%, while foreign institutional investors have bought $7.07 billion from local equity and $6.38 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.532, up 0.06% from its previous close of 97.494.
Source : livemint.com