Mumbai: The Indian rupee on Tuesday strengthened from its previous close, tracking gains in the local equities.
The traders are also cautious ahead of the US Federal Reserve two-day policy meeting.
Analysts expected no change in policy stance from the two-day Federal Open Market Committee meeting starting later Wednesday, as recent domestic data have been weaker than forecast and a strong dollar has crimped export activities, Reuters reported.
The rupee closed at 63.15, up 0.55% from its previous close. This is the domestic currency’s sharpest gain since 9 January. The local unit opened at 63.36 from its previous close of 63.49 and touched a high and a low of 63.11 and 63.46, respectively.
Since January, the rupee has fallen 0.16%, while foreign institutional investors have bought $8.30 billion from local equity and $6.71 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.401, down 0.38% from the previous close of 96.765.
The S&P BSE Sensex index rose 0.81% to close at 27,396.38 points.
Since 14 April, the local equity markets have fallen by 1,865 points on the expectation of weak monsoon, muted earnings and threat of minimum alternate tax on foreign funds.
The yield on India’s 10-year benchmark bond closed at 7.764% compared with its Monday’s close of 7.782%. Bond yields and prices move in opposite directions.
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| Since January, the rupee has fallen 0.16%, while foreign institutional investors have bought $8.30 billion from local equity and $6.71 billion from bond markets |
Analysts expected no change in policy stance from the two-day Federal Open Market Committee meeting starting later Wednesday, as recent domestic data have been weaker than forecast and a strong dollar has crimped export activities, Reuters reported.
The rupee closed at 63.15, up 0.55% from its previous close. This is the domestic currency’s sharpest gain since 9 January. The local unit opened at 63.36 from its previous close of 63.49 and touched a high and a low of 63.11 and 63.46, respectively.
Since January, the rupee has fallen 0.16%, while foreign institutional investors have bought $8.30 billion from local equity and $6.71 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.401, down 0.38% from the previous close of 96.765.
The S&P BSE Sensex index rose 0.81% to close at 27,396.38 points.
Since 14 April, the local equity markets have fallen by 1,865 points on the expectation of weak monsoon, muted earnings and threat of minimum alternate tax on foreign funds.
The yield on India’s 10-year benchmark bond closed at 7.764% compared with its Monday’s close of 7.782%. Bond yields and prices move in opposite directions.