The Indian rupee on Monday strengthened to hit a two-month high against the US dollar as foreign investors continued to buy in local equities.

At 9.05 am, the rupee was trading at 70.42 a dollar, up 0.21%, from Friday's close of 70.57. The Indian unit had opened at 70.43 a dollar and touched a low of 70.36, a level last seen on 5 August.

"The Indian rupee is expected to trade on a stable to stronger note. Sentiment for the Indian equity markets improved, especially after the government announced it’s fourth booster pack, and indications of an earlier-than-expected US-China trade deal boosted investor sentiment to pump in money in risker assets," according to CR Forex Advisors.

Since 19 September, the markets have gained 7.6%, or 2,729 points. In a single day on September 26, FII's bought $1.57 billion in equity.

The Sensex rose 0.15%, or 57.07 points, to 38,879.64. It has gained 7.64% so far this year.

Traders are awaiting the fiscal second-half borrowing plans due to be released on Monday.

The yield on the 10-year Indian government bond was at 6.717%, compared with its previous close of 6.735%. Bond yield and prices move in opposite directions.

In the year to date, the rupee has weakened 1.2%, while foreign investors have bought nearly $6.25 billion in Indian equities and $4.14 billion in debt.

Asian currencies were trading higher. Philippines peso was up 0.29%, Thai Baht 0.26%, China Offshore 0.24%, South Korean won 0.07% and China renminbi 0.04%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 99.172, up 0.06%, from its previous close of 99.109.

Published On : 30-09-2019

Source : Live Mint