Rupee strengthens against US dollar ahead of CPI data
The Indian rupee strengthened against the US dollar on Monday, tracking gains in Asian currencies.
At 2.11pm, the home currency was trading at 64.31 a dollar, up 0.13% from its Friday’s close of 64.40. The rupee opened at 64.26 a dollar and touched a high and a low of 64.24 and 64.32, respectively.
The benchmark Sensex rose 0.65%, or 222.42 points, to 34,228.18 So far this year, it has gained 0.50%.
The 10-year bond yield was trading at 7.497% compared to its previous close of 7.49%. Bond yields and prices move in opposite directions.
So far this year, the rupee has lost 0.69%, while foreign institutional investors have bought $1.48 billion and $ 2.06 billion in equity and debt, respectively.
Consumer Price Index (CPI) and Index of Industrial Production (IIP) data are due to be released on Monday. A Bloomberg poll of 31 analysts on CPI shows a median estimate of 5.1% in year-on-year in January from 5.21% in December, and 28 analysts polled by Bloomberg have median estimates of 6.1% year-on-year in December for IIP, from 8.4% gain in November.
Asian currencies were trading higher. South Korean won was up 0.698%, Japanese yen 0.221%, Thai baht 0.129%, Singapore dollar 0.113%. However, Philippines peso lost 0.839%, China offshore 0.446%, China renminbi 0.427%, Indonesian rupiah 0.139%, Taiwan dollar 0.031%, Hong Kong dollar 0.017 and Malaysian ringgit 0.005%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 90.225, down 0.24%, from its previous close of 90.44.