MumbaI: The rupee on Thursday closed stronger against the US dollar after the Reserve Bank of India eased overseas borrowing rules for companies. The home currency ended at 71.04 to a dollar, up 0.28% from the previous close of 71.24. The rupee opened at 71.10 to a dollar and touched a high and a low of 70.98 and 71.41, respectively.
The 10-year government bond yield closed at 7.277% against Wednesday's close of 7.273%. Bond yields and prices move in opposite directions.
All eligible borrowers can now raise external commercial borrowings up to $750 million per financial year under the automatic route, replacing existing sector-wise limits, the RBI said on Wednesday.
The benchmark Sensex index rose 0.15% to 36,374.08 points. Year to date, it has risen 0.7%.
So far this year, the rupee has declined 1%, while foreign investors have sold $398.50 million and $172.40 million in the equity and debt markets, respectively.
Asian currencies were trading lower amid concern the investigation into Huawei for allegedly stealing trade secrets may undermine a recent improvement in US-China ties.
The Indonesian rupiah was down 0.3%, South Korean won 0.15%, China renminbi 0.12%, China Offshore 0.12%, Singapore dollar 0.06%. However, the Thai Baht was up 0.25% and the Japanese yen 0.06%.