Rupee closes higher against US dollar ahead of key CPI, IIP data

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Mumbai: Indian rupee closed marginally higher against the US dollar ahead of the key macroeconomic data that expire on Friday after 5.30 p.m.

The local currency ended at 63.64 dollars per dollar, an increase of 0.04% compared to Thursday’s close of 63.67. The rupee opened at 63.67 per dollar and touched a maximum and a minimum of 63.48 and 63.72 respectively.

The Sensex benchmark index rose 0.26%, or 88.90 points, to 34,592.39. Until 2018, it gained 1.5%.

Traders are cautious before the key consumer price inflation (CPI) and the industrial production index (PII), which expire today after 5.30 p.m. According to estimates by Bloomberg analysts, the IIP will be 4% in November from 2.2% a month ago, while the CPI will be 5.04% in December from 4.88% of the month past.

So far this year, the rupee gained 0.4%, while foreign investors bought $ 341.30 million and $ 333.90 million in stocks and bonds, respectively.

In 2017, the rupee gained 6.35% and Sensex increased 28%, while foreign institutional investors bought $ 7.73 billion and $ 23.27 billion in capital and debt, respectively.

The yield on 10-year bonds ended at 7,248% compared to its previous close of 7,264%. Yields and bond prices move in opposite directions.

Asian currencies were bullish as the dollar fell behind European Central Bank signals that the economy could be strong enough to justify a reduction in guidance on stimulus.

China renminbi rose 0.70%, South Korea gained 0.68%, Malaysian ringgit 0.39%, China offshore 0.38%, Indonesian rupiah 0.35%, Japanese yen 0.22%, Thai baht 0.16%, Singapore dollar 0.16%.

The dollar index, which measures the strength of the US currency against the main currencies, was quoted at 91.37, 0.52% less than its previous close of 91,852.