Indian rupee gained marginally against the US dollar on Friday as steady capital outflows against the backdrop of tumbling local equities, ongoing global trade war concerns and surging oil prices kept forex sentiment under stress.
At 09:15 AM, the rupee was trading at 72.52 a dollar, up 7 paise, from its Thursday’s close of 72.59. The home currency opened at 72.56 and touched a high and a low of 72.48 and 72.58 a dollar, respectively.
Despite the marginal gains, the home unit appears to struggle, as the US dollar remained broadly firm following the hawkish comments from Fed President Gerome Powell and bullish US economic projections.
The rupee is the worst performing emerging market currency having lost almost 14 percent since January this year. Between April and September the rupee has plummeted more than 7 to the dollar and has breached the psychological 73 mark last week.
Global risk appetite was muted after the US Federal Reserve raised benchmark interest rates as expected while sticking to its script of gradual policy tightening.
Higher US interest rates boost dollar prospects and pressure emerging market currencies.
In debt markets, the yields on the 10-year government bonds dropped 0.14 percent to 8.02 percent after closing at 8.03 percent on Thursday. Bond yields and prices move in opposite directions.
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