Rupee opens higher as US, China agree to trade talks

The rupee is likely to move in a range of 71.40-72.50 levels for the next few trading sessions. Meanwhile, the yield on the 10-year Indian government bond was at 6.583% compared with its previous close of 6.551%

The Indian rupee opened higher against the US dollar for the second straight day on Thursday, in line with its emerging-market peers, as US and China agreeing to hold trade parleys in October boosted risk appetite.

In the year so far, the rupee has weakened 3.26% (Mint photo)

Having opened at 71.85 to a dollar, the Indian currency, in early deals, traded at 71.88, up 0.35% from its Wednesday’s close of 72.12.

The rupee is likely to move in a range of 71.40-72.50 levels for the next few trading sessions, according to CR Forex Advisors.

According to reports, the October talks will be held in Washington, and follows a phone call between China’s Vice Premier Liu He, US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer.

Meanwhile, the yield on the 10-year Indian government bond was at 6.583% compared with its previous close of 6.551%.

In pre-trade, the benchmark equity index Sensex was up 0.53% at 36921.21 points. So far this year, the index has risen 2.2%.

In the year so far, the rupee has weakened 3.26%, while foreign investors have bought nearly $6.77 billion in Indian equities and $4.50 billion in debt.

Asian currencies also traded higher. South Korean won was up 0.8%, Malaysian ringgit 0.25%, China Offshore 0.19%, Philippines peso 0.16%, Singapore dollar 0.07%. The safe haven Japanese yen was, however, down 0.23%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.468, up 0.02% from its previous close of 98.451.

(Bloomberg contributed this story)