The rupee opened 9 paise higher at 64.12 against dollar on Wednesday on account of selling of American currency by banks and exporters.On the further movement of rupee, Angel Broking said, “USDINR spot is likely to depreciate in Friday’s trade as markets remain cautious ahead of the FOMC meeting so as to gauge future policy directions.”The local currency on Tuesday closed 3 paise higher at 64.21 against dollar.Meanwhile, domestic equity markets opened in green following firm global cues. The 30-share BSE Sensex opened 63.77 points, or 0.21 per cent, up at 29984.95, while the 50-share NSE Nifty index opened 30.90 points, or 0.33 per cent, up at 9,344.70.Foreign portfolio investors stood net sellers in domestic equity markets on Tuesday and sold shares worth Rs 1113.53 crore with gross purchases and gross sales of Rs 4607.38 crore and Rs 5720.91 crore, respectively.Sovereign bonds fell for a second day on Tuesday, as the central bank’s auction of long-term treasury bills to drain surplus liquidity boosted supply. The RBI sold 317-days T-bills under market stabilisation scheme worth Rs 250 billion. The central bank has withdrawn Rs 950 billion through issuance of MSS notes and cash management bills since April 17.The benchmark 6.97% 2026 bond yield increased to 6.99 per cent from 6.96 per cent.

Source: Economic Times May 03, 2017 03:56 UTC