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Rupee strengthens further against US dollar

LiveMint logoLiveMint 03-08-2017 Ravindra N. Sonavane

Mumbai: The Indian rupee on Thursday strengthened further against the US dollar a day after Reserve Bank of India (RBI) cut interest rates by 25 basis points and maintained its neutral stance.

The rupee opened at 63.65 a dollar and touched a high of 63.63. At 9.15am, the rupee was trading at 63.65 a dollar, up 0.10% from its Wednesday’s close of 63.70.

Gains in the rupee was also supported by continued inflows by foreign institutional investors (FIIs) in the local equity and debt markets on the hopes of more reforms by the government.

So far this year, FIIs have bought $8.75 billion and $17.70 billion in equity and debt markets, respectively, while the rupee gained over 6.63%, its biggest yearly gains since 2007.

The benchmark Sensex index rose 0.20% or 63.87 points to 32,540.61. So far this year, it has risen over 22.3%. The 10-year bond yield was at 6.463%, compared to its previous close of 6.464%. Bond yields and prices move in opposite directions.

Asian currencies were trading lower. South Korean won was down 0.33%, Thai baht 0.12%, Singapore dollar 0.11%, China renminbi 0.09%, Indonesian rupiah 0.05% and China offshore 0.05%. However, Japanese yen was up 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.948, up 0.12% from its previous close of 92.836.

Traders eying Friday’s report on the American labour market which may provide the next inflection point, as it look for clues on the strength of the world’s largest economy and the US Federal Reserve’s next policy move, Bloomberg reported.

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