The Indian rupee opened below the 83 mark on Monday against the greenback, hit by a rise in US bond yields and the US dollar index.
This is the lowest level for the Indian currency since October 2022.
The US 10-year bond yields rose to 4.18 percent, while the US dollar index – which measures the strength of the American currency against a basket of six other currencies – has rises to 103-level.
ANZ, in a note, said the trend indicated that the movement in yields is more about supply. A wall of issuance in store over coming months has fuelled worries over supply and Fitch’s downgrade of US debt has not helped, it said.
Indian rupee vulnerable amid crude rise
Market analysts see the rupee losing further grounds against the US currency on a near-term basis on the back of the rising trend in global crude prices.
Rising crude prices will hit India’s import bills, and further put pressure on India’s already negative trade account, impacting the local currency, they said.
Other Asian currencies were also down against the US dollar between 0.2 percent and 0.6 percent to begin the week.
The offshore Chinese yuan dropped to 7.2775 to the dollar, the lowest in one-and-a-half months.
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