The Indian rupee weakened marginally against the US dollar on Tuesday, tracking losses in Asian currencies after US President Donald Trump said he was ready to expand the trade war with China. At 9.10am, the rupee was trading at 70.99 a dollar, down 0.18% from its Monday’s close of 70.87.
The currency opened at 70.87 a dollar and touched a low of 71.01. Trump said he will probably push forward with plans to increase tariffs on $200 billion of Chinese goods indicating he would also slap duties on all remaining imports from the Asian nation if negotiations with China’s leader Xi Jinping fail to produce a trade deal.
The 10-year government bond yield stood at 7.747% from its previous close of 7.727%. Bond yields and prices move in opposite directions.The benchmark Sensex Index rose 0.38% or 133.12 points to 35,487.20 points. Year to date, it has rose 3.81%.
So far this year, the rupee has declined 9.66%, while foreign investors have sold $5.48 billion and $7.44 billion in the equity and debt markets, respectively.
Asian currencies were trading lower. Philippines peso was down 0.23%, Malaysian ringgit 0.17%, Indonesian rupiah 0.14%, South Korean won 0.08%, China renminbi 0.07%. However, China Offshore was up 0.1%, Thai Baht 0.04%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.033, down 0.04% from its previous close of 97.074.