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Rupee closes higher against US dollar ahead of key CPI, IIP data

The rupee closed at 65.04, up 0.19% from its previous close of 65.17

business Updated: Mar 12, 2018 17:44 IST
Ravindra N. Sonavane, Livemint
Rupee,Rupee vs Dollar,US dollar
On Friday, the rupee had lost 3 paise to end at 65.17 against the US dollar.(Dhiraj Singh/Bloomberg)

The Indian rupee closed stronger against the US dollar ahead of key Consumer Price Index-based (CPI) inflation and Index of Industrial Production (IIP) data due on Monday after 5.30pm.

The rupee closed at 65.04, up 0.19% from its previous close of 65.17. The home currency opened at 64.95 a dollar and touched a high and a low of 64.95 and 65.07 respectively.

The government will issue IIP and CPI for January and February, respectively, after 5.30pm on Monday. According to Bloomberg analysts’ estimates, IIP for January will be at 6.4% from 7.1% a month ago, while CPI for February will be 4.74% versus 5.07% last month.

India’s benchmark Sensex index rose 1.83%, or 610.80 points, to 33,917.94. So far this year, Sensex has fallen 1.5%.

Yields on 10-year government bonds ended at 7.63% compared to Friday’s close of 7.67%. Bond yields and prices move in opposite directions.

Year to date, the rupee weakened 1.7%, while foreign investors have bought $142.10 million and $857.50 million in equity and debt markets, respectively.

Asian currencies were trading higher as risk appetite returned after data on Friday showed the US economy in good health but without a sharp increase in wages that spurred inflationary fears last month.

Payrolls rose 313,000 in February, compared with the 205,000 median estimate in a survey of economists. The jobless rate was at 4.1%.

South Korean won was up 0.47%, Indonesian rupiah 0.29%, Japanese yen 0.2%, Singapore dollar 0.15%, Taiwan dollar 0.11%, Malaysian ringgit 0.11%, Philippines peso 0.1%, China renminbi 0.08% and China offshore 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 90.01, down 0.09% from its previous close of 90.093.

Bloomberg contributed to this story

First Published: Mar 12, 2018 10:32 IST