Rupee closes flat against US dollar
The rupee ended at 67.64 against the US dollar, up 0.01% from its previous close of 67.64
Mumbai: The Indian rupee on Thursday closed little changed against the US dollar. The rupee ended at 67.64 against the US dollar, up 0.01% from its previous close of 67.64. The currency opened at 67.56 a dollar and touched a high and a low of 67.55 and 67.73, respectively.
Data from the commerce ministry showed Thursday the wholesale price inflation (WPI) rose 4.43% in May from a year ago, higher than the 4% median estimate in a Bloomberg survey of 28 economists and above April’s 3.18%. The rise came on the back of higher fuel, power and lighting prices which rose 11.2%.
Data released on Wednesday showed that current account deficit (CAD) jumped to $13 billion, or 1.9% of gross domestic product (GDP) in fourth quarter of fiscal year 2018, against $2.6 billion recorded in the same period last year. Bloomberg estimated $12.4 billion deficit in a survey.
Traders were also worried after the US Federal Reserve raised rates for the second time this year and upgraded their forecast to four total increases in 2018, as unemployment falls and inflation overshoots their target faster than previously projected.
Traders are now cautious ahead of European Central Bank meeting where members are poised to hold the first formal talks on ending its bond-buying program on Thursday. The Bank of Japan meets Friday, with no change to policy expected.
So far this year, the rupee has weakened 5.6%, while foreign investors have sold $204.40 million and $4.90 billion in equity and debt markets, respectively.
Bond yield gained after wholesale price inflation data rose to 14-month high. The 10-year bond yield closed at 7.94%, from its Wednesday’s close of 7.93%. Bond yields and prices move in opposite directions.
Meanwhile, benchmark Sensex fell 0.39% or 139.34 points, to 35,599.82.