Mumbai: The Indian rupee on Thursday strengthened for the seventh consecutive session, its longest winning streak since February 2017, against the US Dollar as falling Crude Oil Prices reduced fears of fiscal slippage and higher inflation. The rupee hit a near three-month high and gained nearly 2% in the last seven sessions. So far this November, the home currency has risen nearly 4%. At 9.15am, the rupee was trading at 71.12 a dollar, up 0.48% from its Tuesday’s close of 71.46. The currency opened at 71.14 a dollar and touched a high of 71.11—a level last seen on 4 September. Money markets were closed on Wednesday on account of a public holiday. The 10-year government bond yield stood at 7.755% from its previous close of 7.793%. Bond yields and prices move in opposite directions.
On Wednesday, Brent Crude prices tumbled over 6% to the lowest since December 2017. Year to date, Crude Oil is down 5.49%. They are currently down 26.8% from their 2018 peak of $ 86.29 per barrel seen on 3 Oct
The benchmark Sensex Index rose 0.16% or 56.75 points to 35,831.63 points. Year to date, it has rose 3.36%.
So far this year, the rupee has declined 10.6%, while foreign investors have sold $5.03 billion and $7.58 billion in the equity and debt markets, respectively.
Asian currencies were trading higher. South Korean won was up 0.19%, Philippines peso 0.1%, Indonesian rupiah 0.1%, Japanese yen 0.07%, Hong Kong Dollar 0.05%. However, Thai Baht down 0.16%, China renminbi and Singapore dollar were down 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.633, down 0.08% from its previous close of 96.712.
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