The rupee today opened at 69.76 against US dollar today
The rupee today opened at 69.76 against US dollar today

Rupee falls to 6-week low against US dollar as crude prices surge

  • Bond yields hardened on inflationary and fiscal slippage concerns
  • Oil prices spiked on report that the US is likely to ask all importers of Iranian oil to end their purchases or face sanctions

The Indian rupee weakened to six-week low against US dollar as rising crude prices stoked inflationary and fiscal slippage concerns. In early trade, the rupee was trading at 69.78 a dollar, down 0.54% from its previous close of 69.36. The home currency opened at 69.76 a dollar and touched a low of 69.80 - a level last seen on 11 March 2019.

The 10-year bond yield was trading at 7.454% - a level last seen on 27 February, from its Friday's close of 7.39%. Bond yields and prices move in opposite directions.

Oil rose to the highest in almost six months as the reports said that US government is planning to completely end sanction waivers that allowed buyers to import Iranian crude.

So far this year, the rupee has gained 0.6%, while foreign investors have bought $7.53 billion in equity and sold $658.40 million in debt market.

Stock market index Sensex was also weak in early trade.

Most other Asian currencies were also trading lower. Philippines peso was down 0.53%, South Korean won 0.35%, Thai Baht 0.19%, Indonesian rupiah 0.17%, China Offshore 0.09%, China renminbi 0.09%, Singapore dollar 0.08%, Malaysian ringgit 0.08%, Taiwan dollar 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.375, down 0.01% from its previous close of 97.378.

(Bloomberg contributed this story)