Rupee trades higher at 66.17 against US dollar

Mumbai: The Indian rupee on Thursday strengthened for the fifth consecutive sessions against the dollar helped by continued interest from foreign institutional investors in the local equity market. The rupee has recouped most of its losses it saw earlier this year and was trading just 0.04% lower so far in calendar year 2016.

At 2.05pm, the home currency was trading at 66.17, up 0.32% from its previous close of 66.39. The rupee opened at 66.36 and touched a high of 66.17—a level last seen on 1 January.

FIIs have turned net buyers in local equity markets so far this year. FIIs have bought $305 million from local equity and $1.51 billion in debt markets.

India’s benchmark Sensex rose 0.27% to 25,406.75. Since 1 March to 28 March, foreign institutional investors (FIIs) bought $3.18 billion equities in the local markets due to which stock markets gained 10.4% or over 2,350 points.

Traders are now eyeing US non-farm payroll and unemployment data on Friday for further cues.

Most Asian currencies were trading higher. South Korean won was up 0.67%, Malaysian ringgit 0.52%, Taiwan dollar 0.17%, Singapore dollar 0.12%, Thai baht 0.08%, China offshore 0.06%. However, Indonesian rupiah was down 0.17% and Philippine peso 0.07%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.843, down 0.01% from its previous close of 94.841.

Meanwhile, India’s 10-year bond yield was at 7.486% as compared with its Wednesday’s close of 7.495%. It opened at 7.493 and touched a low of 7.453%—a level last seen on 11 July 2013.

There will be no bank transactions on 1 April due to the annual closure of accounts.