Rupee appreciates by 11 paise to 83.18 a dollar on drop in US Treasury yields
US Federal Reserve is likely done hiking interest rates in the current cycle. The local unit opened at 83.13 a dollar as compared to Friday’s close of 83.29. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03% higher at 105.05.
US treasury yields fell, after data signalled that the country’s labour market was cooling. The 10-year US treasury yield was at 4.57% in Asia, well below last month's multi-year peak above 5%. On Friday, the rupee ended 5 paise lower at 83.29 a dollar.
Also Read: SBI share price gains after Q2 results beat estimates; Should you buy, sell or hold the stock? “Volatility for rupee remained low but appreciated marginally on the NDF (Non Deliverable Forward) after US non-farm payrolls data showed the US economy added 150k jobs in October as compared to estimates of 180k job addition," Gaurang Somaiya, forex and bullion analyst Motilal Oswal Financial Services, said. The US dollar weakened against its major crosses after the release of jobs report. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “Focus will be on the services PMI (Purchasing Managers' Index) number from the eurozone and better-than-expected data could extend gains for the currency.
We expect the USD-INR (spot) to trade in the range of 83.05 and 83.40," Somaiya added. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.61% to $85.41 per barrel. Also Read: Zomato Q2 results cheer the Street. Here's what should you do with the stock In the domestic equity market, the 30-share BSE Sensex was trading 395.34 points, or 0.61%, higher at 64,759.12, while the NSE Nifty
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