Rupee opens weak at 61.85 as dollar strengthens.

Mumbai: The Indian rupee on Thursday opened lower at 61.85 per dollar against its Tuesday’s close of 61.79, tracking losses in other Asian currency pairs. But further decline is likely to be limited as exporters will come in to sell dollars close to 62 levels, dealers say.

Markets were closed on Wednesday on account of Christmas.

Most Asian currencies trading flat-to-slightly weaker compared with the dollar. The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.543, down 0.02% from its previous close of 80.558.

The dollar also hit a five-year high against the yen on Thursday on expectations the US economy will continue a solid recovery, allowing the Federal Reserve to gradually withdraw its stimulus next year.

The yield on India’s 10-year benchmark bond was rose to 8.866%, compared with its Tuesday’s close of 8.816%.

Traders will now watch the domestic share market for cues on the direction of foreign fund flows.

At 9.09am, the domestic currency was trading at 61.9 per dollar, down 0.16%. India’s equity benchmark BSE Sensex was trading flat at 21,051 points, up 0.09%.

Source : livemint.com​