Rupee Weakens Past 61 Against Dollar

The rupee weakened past the 61 mark against the dollar on Friday, tracking weaknesses in other Asian currencies.At 2.52pm, the home currency was trading at 61.14 to the dollar, down 0.94% from the previous close of 60.56. India’s benchmark index, S&P BSE Sensex was trading at 25,676.88 points on BSE, down 0.84%.

The local unit opened at 60.77 and touched a high and a low of 60.69 and 61.15 per dollar, respectively. That was the lowest level since 25 April, respectively.

“The dollar index has been strengthening, while Asian markets are weak. Moreover internationally there is some negative news this week with the Fed’s (US Federal Reserve) decision to continue with its asset buying programme and what happened at the World Trade Organization (WTO). We expect the rupee to hit 61.50 in the next seven days,” said Abhishek Goenka, founder and chief executive officer, India Forex Advisors.

The WTO on Thursday failed to reach a deal to standardize customs rules due to India’s demands for concessions on food security.Most of the Asian currencies were trading lower. The Indonesian rupiah was down 1.89%, South Korean won down 0.9%, Philippine peso down 0.81%, Malaysian ringgit down 0.51%, Thai baht down 0.16%, Singapore dollar down 0.15%, and the Japanese yen down 0.15%.

The yield on India’s 10-year benchmark bond was trading at 8.505%, compared with its previous close of 8.486%. Bond yields and prices move in opposite directions. Since the beginning of this year, the rupee has gained 1.44%, while foreign institutional investors have bought $12.11 billion during the period from local equity markets. The dollar index, which measures the US currency’s strength against major currencies, was trading at 81.498, up 0.05% from the previous close of 81.456

Source : livemint.com