Rupee closes lower against US dollar
Mumbai: The Indian rupee on Friday weakened against the US dollar after local equity markets fell for the fourth consecutive session on worries of higher crude oil prices.
The rupee ended at 68.01 against the US dollar, down 0.45% from its previous close of 67.70. The currency opened at 67.74 a dollar and touched a low of 68.08.
Benchmark Sensex Index fell 0.86% or 300.82 points to 34848.30. Since January, it has gained 2.5%.
Rising US treasury yields kept Asian currencies and bonds under the hammer as the dollar headed for its fifth straight weekly gain. The 10-year Treasury yield rose for a fifth-straight day and touched its highest level since 2011.
Brent crude topped $80 a barrel for the first time since 2014 amid signals that stockpiles of excess oil will continue shrinking around the world.
Bond yields fell for a third session after a Cogencis report saying that the finance ministry wants more state-run banks to participate in govt bond auctions. The 10-year bond yield ended at 7.756%, up from its Thursday’s close of 7.881%. Bond yields and prices move in opposite directions.
So far this year, the rupee has weakened over 6%, while foreign investors have bought $660.20 million and sold $3.47 billion in equity and debt markets, respectively.
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