Rupee weakens against US dollar

Mumbai: The Indian rupee on Thursday weakened against the US dollar, after local equity markets fell for fourth consecutive sessions.

At 2pm, the rupee was trading at 63.95 a dollar, down 0.18% from its Wednesday’s close of 63.84. The rupee opened at 63.92 a dollar and touched a high and a low of 63.92 and 64.07 respectively.

The benchmark Sensex index fell 0.5% or 155.73 points to 31,642.11. So far this year, it has risen over 19.4%.

The 10-year bond yield was at 6.472%, compared to its previous close of 6.466%. Bond yields and prices move in opposite directions.

So far this year, the rupee gained 6.4%, while foreign institutional investors (FIIs) bought $8.98 billion and $18.83 billion in equity and debt markets, respectively.

Losses in the Asian currencies market also dampened the sentiment. Traders are focusing on US inflation data due Friday given its potential impact on Federal Reserve’s monetary policy.

South Korean won was down 0.57%, Taiwan dollar 0.18%, Malaysian ringgit 0.15%, Philippines peso 0.12% and Indonesian rupiah 0.05. However, China offshore spot was up 0.22%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.622, up 0.08% from its previous close of 93.548.