Mumbai, India (BBN) – Indian rupee was trading strong at 67.98 as the US dollar fell against a basket of currencies after Treasury yields declined on data showing the US economy growing more slowly than expected.
Forex dealers said increased demand for the US currency from importers put a squeeze on the rupee, but the dollar’s weakness against other currencies overseas capped the losses, reports The Hindu Business Line.
The domestic unit opened a tad weak at 68.04 against the previous close of 68.03 at the Interbank Foreign Exchange market today.
It hovered in a range of 68.08 and 67.93 before quoting at 67.98, up 5 paisa at 4.25pm local time.
Meanwhile, the 30-share BSE index Sensex ended down 32.9 points or 0.12 per cent at 27,849.56 as caution set in ahead of the Union Budget.
Underlying concerns over US President’s Donald Trump’s protectionist trade stance also cut short the dollar’s stay at the one-week peak, with a temporary travel ban on people from seven Muslim-majority countries imposed at the weekend adding another layer of uncertainty.
The dollar was down 0.6 per cent at 114.410 yen after it rose on Friday to 115.380, its highest since January 20.