Rupee closes weaker against US dollar ahead of IIP, CPI data

Mumbai: The Indian rupee closed over one week low against the US dollar tracking losses in the global equity and currencies markets. Traders are cautious ahead of the key macro economic data due later on Monday.

The rupee closed at 64.44—a level last seen on 1 June, down 0.29% from its Friday’s close of 64.25. The rupee opened at 64.35 a dollar and touched a high and a low of 64.32 and 64.46, respectively.

The benchmark Sensex index fell 0.53% or 166.36 points to closed at 31,095.70. Year-to-date, it has gained 16.5%. The 10-year bond yield closed at 6.517% compared to its previous close of 6.503%. Bond yields and prices move in opposite directions.

The government will issue Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data for April and May, respectively, after 5.30pm.

According to Bloomberg estimates, CPI will be at 2.5% for May from 2.99% a month ago, while IIP will be at 2.8% for April from 2.7% in March.

So far this year, the rupee has gained 5.5%, while foreign investors bought $7.68 billion and $12.34 billion in local equity and debt markets, respectively.

Asian currencies were trading lower ahead of multiple central bank policy decisions this week.

The Federal Reserve is scheduled to announce its policy decision Wednesday, followed by the Bank of England and the Swiss National Bank on Thursday, as the Bank of Japan rounds up the week Friday.

South Korean won was down 0.37%, Taiwan dollar 0.19%, Philippines peso 0.15%, Indonesian rupiah 0.13%, China Offshore 0.12%, Malaysian ringgit 0.06%. However, Japanese yen was up 0.43%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.11, down 0.17% from its previous close of 97.274.