Mumbai: The rupee strengthened by 9 paise to hit a four-week high of 64.78
against the US dollar today as bond yields fell 25 basis points after
the government announced lower-than-expected borrowing plan for the
first half of FY19.
The government said it will borrow Rs 2.88
lakh crore in the April-September period of 2018-19, lower than Rs 3.72
lakh crore it had borrowed in the first half of the current fiscal, and
introduce bonds linked to CPI or retail inflation.
The US
dollar, however, had strengthened against some currencies overseas amid
reports of trade negotiations between the US and China, which eased
fears of a trade war and improved investors' appetite for riskier
assets.
A positive opening for the stock market also boosted the
domestic currency, dealers said.
Yesterday, the rupee had gained
14 paise to end near a two-week high of 64.87 against the US currency
on sustained dollar unwinding by exporters and banks.
Meanwhile, the benchmark BSE Sensex rose 233.41 points, or 0.70 per cent, to 33,299.82 points in early trade today.
PTI
