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Rupee weakens to 67.10 against US dollar in opening trade |
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Mumbai: The Indian rupee on Friday weakened past the 67-mark to hit over a seven-week low against the US dollar in the opening trade, tracking the losses in the Asian currencies and global equity markets.
The home currency opened at 67.10 against the US dollar and touched a low of 67.11— a level last seen on 21 September. At 9.15am, the rupee was trading at 67.06 a dollar, down 0.7% from its previous close of 66.63. So far this year, it fell 1%.
The rupiah led declines in Asian currencies as sentiment towards emerging-market assets soured on speculation a Donald Trump-administration will enforce protectionist trade policies. The US could drop out of Trans-Pacific Partnership trade deal within his first 100 days in office, a Bloomberg report said. Trump’s proposals include pledges to cut taxes and spend as much as $500 billion on infrastructure, plans that are seen widening the budget deficit and stoking inflation.
Indonesian rupiah was down 3.8%, South Korean won 1.31%, Malaysian ringgit 1%, Taiwan dollar 0.53%, Philippines peso 0.46%, Thai baht 0.15%, China renminbi 0.09%. However, Japanese yen was up 0.4%.
India’s benchmark Sensex index was trading at 27,347 points, down 0.62% or 169.98 points from its previous close. So far this year, it has gained 5.5%.
The government will issue Index of Industrial Production (IIP) data for September on Friday. According to Bloomberg estimates, IIP will be at 1% in September against -0.7% a month ago.
The government will also issue Wholesale Price Inflation (WPI) and Consumer Price Inflation (CPI) data for October on Tuesday. According to Bloomberg estimates, WPI will be at 3.69% in October against 3.57% a month ago. CPI will be at 4.12% against 4.31% a month ago.
The benchmark 10-year government bond yield was trading at 6.695%, compared to Thursday’s close of 6.661%. Bond yields and prices move in opposite directions.
Foreign institutional investors (FIIs) have sold $501.60 million in debt and bought $6.51 billion in equity till date this year.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.616, down 0.17% from its previous close of 98.785.
Source : livemint.com
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