Rupee opens marginally higher against US dollar

Mumbai: The rupee on Wednesday strengthened marginally against the US dollar in the opening trade.

The rupee opened at 63.94 a dollar. At 9.10am, the rupee was trading at 63.97 a dollar, up 0.07% from its Tuesday’s close of 64.02.

Traders are cautious ahead of the gross domestic product (GDP) data for June quarter on 31 August. According to a Bloomberg poll, GDP will be at 6.5% for the second quarter against 6.1% a quarter ago.

The benchmark Sensex index rose 0.4% or 124.87 points to 31,513.26. So far this year, it has risen over 18.6%.The 10-year bond yield was at 6.543% compared to its previous close of 6.568%. Bond yields and prices move in opposite directions.

So far this year, the rupee gained 6.3%, while foreign institutional investors (FIIs) bought $7.04 billion and $19.60 billion in equity and debt markets, respectively.

Asian currencies were trading mixed. South Korean won was up 0.35%, China offshore 0.31%, China renminbi 0.17%, Taiwan dollar 0.04%. However, Philippines peso was down 0.26%, Japanese yen 0.05%, Malaysian ringgit 0.04%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.311, up 0.07% from its previous close of 92.249.

North Korean leader Kim Jong Un said the test-firing of a missile over Japan on Tuesday was a “meaningful prelude” to containing the American territory of Guam, adding he will continue to watch the response of the US before deciding on further action.