Rupee closes at 67.04 per US dollar

MUMBAI: The Indian rupee on Thursday strengthened for the third session in a row to hit a two-week high against the US dollar, tracking gains in the local equity markets over optimism that the government may pass the goods and services tax bill in the current parliament session.

The home currency closed at 67.04—a level last seen on 14 July, up 0.17% from its previous close of 67.15. The rupee opened at 67.07 and touched a high of 66.99 a dollar, a level last seen on 15 July.

India’s 10-year bond yield closed at 7.191%, a level last seen on 30 May 2013, compared with its Wednesday’s close of 7.251%. It fell 6 basis points from its previous close, its steepest fall since 29 February.

India’s equity benchmark Sensex index rose 0.66% or 184.29 points to close at 28,208.62 points. So far this year, it has gained 8.01%.

The Union cabinet approved key changes to the Constitution Amendment Bill for the Goods and Services Tax (GST), doing away with a 1% additional levy on supply of goods, and proposing full compensation to states for five years for revenue loss arising from transition to GST.

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