Mumbai: The Indian rupee closed at a twelve-week high against the US dollar as foreign inflows returned to India in the wake of better earnings and the return of risk appetite.Traders are cautious ahead of the US jobs data due later on Friday. This was the eight consecutive sessions when the rupee closed higher.
The home currency closed at 67.32—a level last seen on 11 November 2016, up 0.1% from its previous close of 67.38. The local currency opened at 67.34 a dollar and touched a low of 67.29 — a level last seen on 11 November 2016. FII’s bought nearly $635.60 million in equity over the last twelve trading sessions and have been buyers on all but one trading sessions over this period.
India’s benchmark Sensex index rose 0.05% or 13.91 points to closed at 28,240.52. So far this year, it has risen 6%. India’s 10-year bond yield closed at 6.409% from its Thursday’s close of 6.401%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 0.91%, while foreign institutional investors have bought $111.40 million from local equity and sold $247.20 million in debt markets.
Asian currencies were trading lower. Japanese yen was down 0.31%, Philippines peso 0.24%, Singapore dollar 0.22%, China offshore 0.17%, Malaysian ringgit 0.11%, South Korean won 0.07%, Thai baht 0.05%. However, Taiwan dollar 0.34%, China renminbi 0.19%, Indonesian rupiah 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.07, up 0.28% from its previous close of 99.79