Rupee weakens against US dollar

Mumbai: The Indian rupee on Wednesday weakened against the US dollar as dealers are concerned about slowing global economic growth and overseas funds sell Indian stocks and bonds. At 9.10am, the rupee was trading at 69.59 dollar, down 0.23% from its previous close of 69.44. The currency opened at 69.63 a dollar, touching a high 69.55 and a low 69.64. The 10-year bond yield stood at 7.397%, from its Tuesday’s close of 7.418%. Yield climbed 5bps on Tuesday to 7.42% after reaching 7.45% its highest since December 17.

Yesterday, foreign investors sold $143.55 million in equity and bought $172.45 million in debt market.State-run banks were biggest buyers of sovereign bonds on Tuesday at Rs 1950 crore according to CCIL data and foreign banks were biggest sellers at Rs 1400 crore.

The benchmark Sensex Index gained 0.26% or 93.47 points to 36,161.80 points in pre-opening trade. Yesterday it gained 0.52%

Asian markets were trading lower. Indonesian Rupiah lost 0.690%, Taiwan Dollar 0.666%, South Korean Won 0.527%, Philippines Peso 0.245%, Malaysian Ringgit 0.186%, Singapore Dollar 0.183%, Hong Kong Dollar 0.061%. However, China Renminbi gained 0.312%, Japanese Yen 0.311%, Thai Baht 0.123%, China Offshore 0.044%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.199, up 0.12% from its previous close of 96.085.