For the fifth session in a row, the Indian rupee opened higher against the US dollar on Friday morning at 69.33/dollar. During the day, the rupee touched a high of 69.21, which is 13 paise higher than its previous close of 69.34 on Thursday. This level was last seen on 10 August 2018.
The domestic currency has been gaining on several factors that include:
- A Reuters poll showed that the investors are holding a bullish stance on the rupee after a recent surge in popularity of the ruling party ahead of the general elections that is hoped to do well for its alliances.
- Increase in foreign inflows into the Indian equity and debt markets has been riding the liquidity push. In March alone, FIIs have infused over Rs 10,000 crore in domestic stock so far.
- The dollar index, a measure of the US dollar against six prominent foreign currencies, has been a little unchanged at 96.738, recovering slightly on Thursday, after its four-day losing streak.
- Sensex and Nifty 50, the two major Indian stock market benchmarks reclaimed their 38,000 and 11,400 marks respectively on Friday.
- The 10-year bond yield was trading at 7.361 percent from its Thursday's close of 7.377 percent.
- Most Asian currencies like Thai Baht, Japanese yen, Singapore dollar, Taiwan dollar, and China renminbi were also trading marginally higher. However, South Korean won fell 0.25 percent, Indonesian rupiah by 0.12 percent and Philippines peso declined 0.1 percent.