Business

Rupee Edges Higher to 67.13 Against Dollar

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The Indian rupee on Thursday was trading little changed against the US from its previous close after both the US and Japanese central banks kept their policy stance unchanged.

At 9.10am, the home currency was trading at 67.13, up 0.03% from its previous close of 67.15. The rupee opened at 67.13 a dollar and touched a high and a low of 67.13 and 67.15, respectively.

India’s benchmark Sensex index rose 0.09% or 22.96 points to 26,749.30. So far this year, Sensex is up 2%.

The Bank of Japan (BOJ) refrained from adding any stimulus that could slow its advance. Governor Haruhiko Kuroda and his board opted to continue to gauge the economic impact of their negative rate policy ahead of an election next month.

The BOJ decision comes after the US Federal Reserve refrained from raising borrowing costs this month, with chairwoman Janet Yellen citing uncertainty over the UK’s 23 June referendum on whether to stay in the European Union as a factor, Bloomberg reported.

Data released by the commerce ministry showed exports contracted 0.79% in May, while imports slipped 13.16%, leaving a trade deficit of $6.27 billion.

Meanwhile, India’s 10-year bond yield was trading at 7.518%, compared with Wednesday’s close of 7.517%.

So far this year, the rupee has weakened 1.5%, while foreign institutional investors (FIIs) have bought $2.85 billion from the local equity market and sold $1.20 billion in debt markets.

Most Asian currencies were trading higher. Japanese yen was up 1.16%, Singapore dollar 0.24%, Malaysian ringgit 0.22%, Indonesian rupiah 0.2%, South Korean won 0.2%, Thai baht 0.19% and Taiwan dollar 0.15%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.477, down 0.15% from its previous close of 94.61.