The Indian rupee on Tuesday opened marginally lower against the US dollar amid mixed cues from Asian peers.
At 9.10am, the domestic currency was trading at 70.80 a dollar, down 0.05% from Monday’s close of 70.77. The Indian unit had opened 70.80 a dollar.
Traders focus on the progress in the US and China trade deal. Earlier, the Financial Times reported that the US was debating whether to roll back levies on $112 billion of Chinese imports.
“In the coming days, momentum of the rupee will be driven majorly by the developments happening on the US-China trade front and foreign flows in the Indian markets. Any positive news will have a positive impact on the rupee and vice versa. Therefore, we suggest to remain cautious while hedging as markets these days are sentiment driven,” said CR Forex Advisors.
The yield on the 10-year Indian government bond was at 6.484% compared with its previous close of 6.475%.
The benchmark equity index Sensex was at 40331.43, up 0.073%. Year to date, it has gained 11.36%.
In the year so far, the rupee has weakened 1.4%, while foreign investors have bought nearly $10.48 billion in Indian equities and $4.92 billion in debt.
Asian currencies were trading mixed. China Offshore was up 0.11%, China Renminbi 0.08%, Thai Baht 0.04%. However, Japanese yen was down 0.17%, South Korean won 0.15%, Indonesian rupiah 0.11%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.599, up 0.10% from its previous close of 97.505.
