The Indian rupee declines against the US dollar amid higher US Treasury yields and a fall in most Asian peers.
The Indian rupee on Thursday declined by 9 paise to hit an all-time low of 85.24 against US dollar in the opening trade, amid higher US Treasury yields and a fall in most Asian peers. The 10-year US Treasury yield rose to the highest since late May on Tuesday.
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Surging crude oil prices also pushed the rupee down further, according to analysts. Brent crude was trading higher by 0.38 per cent at 73.86 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was not too far from the year-to-date high and was trading at 108.11.
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Among Asian currencies, the Chinese Yuan (CNH) dropped to 7.3070 to the dollar, the South Korean Won (KRW) was weaker at 1,464 and the Indonesian Rupiah (IDR) was stable at 16,190 against the dollar. South Korean consumer sentiment was at its weakest since 2022 on political uncertainty taking KRW down.
“The dollar index continued to remain higher at 108.15 as Euro remained just near to 1.04 levels and JPY fell to 157.43, while US 10-year bond yield remained at an elevated level of 4.5940 per cent this morning in the early morning in the post-Christmas trade,” said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP.
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On Tuesday, the rupee had closed at a fresh all-time low of 85.15 against the dollar, registering a loss of 4 paise from its previous close. India’s financial markets were off on Wednesday.
