Mumbai: The Indian rupee on Friday pared all the morning losses and closed one-week stronger against US dollar post US President Donald Trump decided to slap tariffs on China.
The home currency ended at 65.01 a dollar, up 0.16% from its Thursday’s close of 65.11. The rupee opened at 65.18 a dollar and touched a high and a low of 64.98 and 65.20, respectively.
Trump instructed US trade representative Robert Lighthizer to impose broader tariffs on at least $50 billion in Chinese imports, as recompense for alleged intellectual property abuses. In response to Trump, China said it does not fear a trade war with the US and announced plans for reciprocal tariffs on $3 billion of imports from the US.
Benchmark Sensex index fell 1.24%, or 409.73 points, to 32,596.54. So far this year, it has declined 4%.
Bond yield fell for the third session to hit five week low ahead of the April-September bond auction calendar which is expected to be out first week of April.
The 10-year bond yield ended at 7.557%—a level last seen on 14 February, compared to its previous close of 7.558%. Bond yields and prices move in opposite directions.
So far this year, the rupee fell 1.7%, while foreign investors have bought $1.66 billion in equity and sold $84.40 million in debt market.
Asian currencies were trading higher. Japanese yen was up 0.4%, Singapore dollar 0.21%, Thai baht 0.18%, China offshore 0.12% and China renminbi 0.05%. However, South Korean won was down 0.74%, Indonesian rupiah 0.23% and Taiwan dollar 0.13%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 89.623, down 0.26% from its previous close of 89.857.livemint