Rupee gains against dollar ahead of key inflation data

Mumbai: The Indian rupee was trading higher against the US dollar on Friday, tracking gains in local equity and Asian currencies markets, and ahead key inflation data due later in the day. At 11.50am, the rupee was trading at 73.79 a dollar, up 0.44% from its Thursday’s close of 74.13. The currency opened at 73.80 a dollar. The 10-year gilt yield stood at 7.986% from its previous close of 8.031%. Bond yields and prices move in opposite directions.

Rupee gains against dollar ahead of key inflation data

The government will release Consumer Price Index-based (CPI) inflation and Index of Industrial Production data today after 5.30pm. According to a Bloomberg poll, CPI will be at4% for September month from 3.69% a month ago. IIP will be at 3.9% for August versus 6.6% last month.

Benchmark Sensex rose 0.71% or 240 points to 34,302 points. Year to date, it has gains 0.4%.

So far this year, the rupee has declined 13.8%, while foreign investors have sold $3.84 billion and $7.92 billion in the equity and debt markets, respectively.

Asian currencies were trading higher after U.S. inflation moderated and President Trump was said to be planning a meeting with Chinese President Xi to defuse trade tension.

South Korean won was up 0.87%, Taiwan dollar 0.62%, Indonesian rupiah 0.24%, Philippines peso 0.19%, Singapore dollar 0.17%, Malaysian ringgit 0.07%. However, China Offshore spot was down 0.32%, China renminbi 0.16%, Japanese yen 0.12%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.994, down 0.02% from its previous close of 95.017.

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