Rupee closes 16 paise stronger against US dollar at 67.29

Mumbai: The Indian rupee on Thursday strengthened against the US dollar from its previous close, on account of selling of dollars by exporters and banks.

The home currency closed at 67.29, up 0.24% from its previous close of 67.45. The rupee opened at 67.42 per US dollar and touched a high of 67.21 in intraday trade.

“Indian rupee recovers from yesterday’s low and appreciated on account of selling of dollars by exporters and banks. Further, weakness in the dollar index ahead of the employment figures from the US led to positive movement in the currency. However, sharp upside in the currency was capped due to weak domestic market sentiments,” said Kunal Parma research associate from Choice Broking.

India’s benchmark Sensex index rose 0.48%, or 129.21 points, to close at 26,843.14. So far this year, the Sensex has gained 2.78%.

On Thursday, the US will announce jobs data and crude oil inventories along with factory orders data. The Reserve Bank of India meets on Tuesday to review its monetary policy, while the US Federal Reserve officials meet 14-15 June to discuss their policy. Fed chair Janet Yellen said last week that an increase in borrowing costs would probably be “appropriate” in coming months, Bloomberg reported.

Traders are cautious ahead of Organization of the Petroleum Exporting Countries (Opec) statement due to be announced later in the day in Vienna. European Central Bank (ECB) will announce its interest rate decision shortly.

So far this year, the rupee has weakened 1.69%, while foreign institutional investors (FIIs) have bought $2.18 billion from the local equity market and sold $960.40 million in debt markets.

Most Asian currencies closed higher. South Korean won was up 0.55%, Japanese yen 0.52%, Thai baht 0.21%, Indonesian rupiah 0.13%, Philippines peso 0.09%, Singapore dollar 0.07% and Taiwan dollar 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.309, down 0.15% from its previous close of 95.455.

Meanwhile, India’s 10-year bond yield closed at 7.484%, as compared with its Wednesday’s close of 7.488%.