Rupee, bond trade flat ahead of key GDP data

In the year so far, rupee weakened 2.81% against the US dollar. (Photo: iStock)

Mumbai: The Indian rupee and government bonds were largely unchanged on Friday as traders await the release of India’s gross domestic product (GDP) data for the June quarter, due later in the day.

The currency opened at 71.77 to a dollar. At 9.10 am, the domestic currency was trading at 71.76, up 0.01% from its Thursday’s close of 71.72.

In the year so far, the rupee has weakened 2.81%.

Traders will also gauge chances of further monetary policy easing by the Reserve Bank of India, as the GDP data is likely to show economic growth slowed for the fifth straight quarter. Economic growth is expected to further ease to 5.7% in the June-quarter from a five-year low of 5.8% in the previous quarter, according to a Bloomberg survey.

The 10-year government bond yield was at 6.558% compared with its previous close of 6.551%.

In pre-trade, the benchmark equity index Sensex was up 0.02% at 37461.03 points. So far this year, the index has risen 2.77%.

Foreign investors have bought nearly $7.21 billion in Indian equities and $4.06 billion in debt.

Asian currencies were mixed as investors were cautious, assessing signs of some easing in trade tensions between the US and China.

The Malaysian ringgit was down 0.22%, China Offshore fell 0.18%, China renminbi declined 0.13%, Singapore dollar lost 0.13%, and Thai Baht fell 0.1%. However, South Korean won was up 0.54%, Philippines peso rose 0.08%, Taiwan dollar gained 0.08%, and Japanese yen rose 0.04%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.525, up 0.02% from its previous close of 98.507.

[“source=livemint”]

Author: Ayaan