Rupee strengthens to 67.65 against US dollar in early trade.

Mumbai: The Indian rupee on Wednesday strengthened against the US dollar, tracking the gains in domestic equity markets.

The home currency opened at 67.71 against the US dollar. At 9.15pm, the rupee was trading at 67.65 a dollar, up 0.16% from its previous close of 67.74. So far this year, it fell 2%.

India’s benchmark Sensex index was trading at 26,508.94 points, up 0.78% or 204.31 points from its previous close. So far this year, it has gained 1.2%.

India’s trade deficit widened to $10.16 billion in October against $9.69 billion a year ago due to higher gold imports which jumped 108.4% to $3.5 billion. Export grew 9.59% due to higher exports of gems & jewellery, engineering goods and readymade garments. Imports expanded 8.11%.

India’s retail price inflation fell to a 14-month low of 4.2% in October from 4.39% a month ago while wholesale price inflation softened to a four-month low of 3.39% in October against 3.57% a month ago.

Bond yield fell six out of seven trading sessions and hit a fresh seven-and-half year low. The benchmark 10-year government bond yield was trading at 6.39%—a level last seen on 21 May 2009, compared to Tuesday’s close of 6.534%. Bond yields and prices move in opposite directions.

FIIs have sold $441.40 million in debt and bought $6.2 billion in equity till date this year.

South Korea’s won and Taiwan dollar lead gains in Asian currencies as the rally in the dollar and US. Treasury yields stall with Trump seeming to moderate some of his most controversial campaign pledges.

Taiwan dollar was up 0.31%, South Korean won 0.32%, Indonesian rupiah 0.11%, Japanese yen 0.1%, Thai Baht 0.1%. However, Malaysian ringgit was down 0.18%, China Renminbi 0.12%, China offshore 0.11%, the Philippines peso 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.91, down 0.32% from its previous close of 100.23.

Source : livemint.com