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Rupee hits 10-week low against US dollar in opening trade

LiveMint logoLiveMint 21-09-2017 Ravindra N. Sonavane

Mumbai: The rupee on Thursday weakened over 10-week low against the US dollar, tracking losses in the Asian currencies markets after the US Federal Reserve left rates unchanged.

The home currency opened at 64.50 a dollar and touched a low of 64.53, a level last seen on 12 July. At 9.15am, the rupee was trading at 64.48 a dollar, down 0.34% from its Wednesday’s close of 64.27.

Fed signalled that it still expects one more increase by the end of the year despite a recent bout of low inflation. The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of US Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis, Reuters reported.

The 10-year bond yield was at 6.604% compared to its previous close of 6.577%. Bond yields and prices move in opposite directions.

The benchmark Sensex index rose 0.09% or 30.51 points to 32,431.02. So far this year, it has risen over 21.09%.

So far this year, the rupee has gained 6%, while foreign institutional investors (FIIs) have bought $6.78 billion and $20.41 billion in equity and debt, respectively.

Asian currencies were trading lower. South Korean won was down 0.39%, Malaysian ringgit 0.32%, Indonesian rupiah 0.29%, China renminbi 0.23%, Japanese yen 0.21%, Singapore dollar 0.21%, Taiwan dollar 0.11% and Thai baht 0.1%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.579, up 0.08% from its previous close of 92.51.

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