You are using an older browser version. Please use a supported version for the best MSN experience.

Rupee weakens against US dollar to hit six-month low

LiveMint logoLiveMint 26-09-2017 Ravindra N. Sonavane

Mumbai: The rupee on Tuesday weakened for fourth consecutive sessions to hit fresh six-month low against the US dollar as foreign investors continued to liquidate its holding in local equity markets on weak cues of both domestic as well as global fronts.

The home currency opened at 65.22 a dollar and touched a low of 65.27—a level last seen on 24 March. At 9.15am, the rupee was trading at 65.19 a dollar, down 0.16% from its Monday’s close of 65.12.

Foreign investors are selling continuously in the domestic markets on worries of overshooting fiscal deficit, US-North Korea standoff and the decision by the US Federal Reserve to shrink its balance sheet starting next month. Since August, foreign institutional investors (FIIs) sold nearly $2.50 billion in local equity markets.

The 10-year bond yield was at 6.632%, compared to its previous close of 6.619%. Bond yields and prices move in opposite directions. The benchmark Sensex index rose 0.19% or 59.18 points to 31,685.81. So far this year, it has risen over 19.89%.

So far this year, the rupee has gained 4.3%, while FIIs have bought $6.39 billion and $20.51 billion in equity and debt, respectively.

Asian currencies were trading lower. South Korean won was down 0.36%, Indonesian rupiah 0.2%, Philippines peso 0.17%, Malaysian ringgit 0.15%, Thai baht 0.15%, Taiwan dollar 0.08%. However, Japanese yen was up 0.1%, Singapore dollar 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.574, down 0.08% from its previous close of 92.648.

More From LiveMint

image beaconimage beaconimage beacon