Rupee opens higher at 71.67 a dollar, bond yields fall

In the currency market, the dollar was confined to a narrow range versus the yen as traders weighed the prospect of US interest rate cuts against their demand for safe-haven assets.

The dollar index against a basket of six major currencies rose 0.03 percent to 98.447.

Traders are likely to take their cues from the European Central Bank, which is all but certain to approve new stimulus measures on Thursday, as major central banks line up support measures for a weakening global economy, reported Reuters.

In the commodity markets, oil rose after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy following the appointment of Prince Abdulaziz bin Salman as the new energy minister of Saudi Arabia.

Global benchmark Brent was up 7 cents at $61.61 a barrel by 0106 GMT, while U.S. West Texas Intermediate was 20 cents, or 0.3 percent, higher at $56.72 a barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 561.17 crore on Thursday, according to provisional exchange data.

In debt markets, the yields on the 10-year government bonds were down 0.06 percent at 6.60 percent from the previous close of 6.60 percent. Bond yields and prices move in opposite directions.