Rupee erases gains, closes lower against US dollar

The rupee closed at 64.93 a dollar, down 0.05% from its Tuesday’s close of 64.89
The rupee opened at 64.77 a dollar and touched a high and a low of 64.72 and 64.96,
Mumbai: The Indian rupee erased all the gains and closed marginally lower against the US dollar before the release of US Federal Reserve’s meeting minutes due later on Wednesday.

The home currency closed at 64.93 a dollar, down 0.05% from its Tuesday’s close of 64.89. The rupee opened at 64.77 a dollar and touched a high and a low of 64.72 and 64.96, respectively.

The local equity markets closed higher for the fifth consecutive session and gained over 750 points, or 2.3%, in this period. The benchmark Sensex rose 0.25%, or 83.20 points, to 33,561.55. So far this year, it has gained 25.73%.

The 10-year bond yield ended at 6.958%, compared to its previous close of 6.895%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 4.84%, while foreign institutional investors have bought $8.21 billion and $22.48 billion in equity and debt, respectively.

Asian currencies were trading higher as dollar weakened after US Fed chair Janet Yellen warned against raising US interest rates too quickly.

South Korean won was up 0.60%, Malaysian ringgit 0.59%, Japanese yen 0.37%, Taiwan dollar 0.34%, Singapore dollar 0.2%, China renminbi 0.19%, China offshore 0.17%, Philippines peso 0.13%, Thai baht 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.76, down 0.20% from its previous close of 93.952