Rupee ends 8 paise lower at 83.23 against the US dollar
- The US dollar index, which measures the currency against six major developed market peers, jumped to a fresh year-to-date high of 106.20 during Asia hours, but was last quoted 0.06% higher at 105.94.
The Indian rupee ended 8 paise lower against the US dollar on Tuesday weighed down by a stronger greenback overseas and spike in US treasury yields. The local currency ended at 83.23 a dollar as compared to previous close of 83.15.
The US dollar index, which measures the currency against six major developed market peers, jumped to a fresh year-to-date high of 106.20 during Asia hours, but was last quoted 0.06% higher at 105.94.
The US 10-year Treasury yield jumped to the highest since October 2007 in Asia trade and was last quoted at 4.51%, amid mounting fears that the US Federal Reserve will keep interest rates elevated for longer.
On Monday, the rupee fell 21 paise to 83.15 a dollar.
The US Federal Reserve may need to raise rates further given the resilience of the economy, Minneapolis Federal Reserve Bank President Neel Kashkari said on Monday.
The rupee will continue trading “sideways with a bearish bias”, Dilip Parmar, a foreign exchange research analyst at HDFC Securities, said.
“But if equity inflows don't return next month, then it could be a problem,” he added.
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Investors now await US Q2 GDP data and core personal consumption expenditure inflation numbers due later this week for further cues on how the Fed will act on policy.
Meanwhile, crude oil prices eased, limiting the fall in rupee.
Brent futures fell 0.83% to $92.52 a barrel, while US West Texas Intermediate (WTI) crude declined 0.88% to $88.89 a barrel.
Also Read: Market close: Nifty 50, Sensex end lacklustre amid weak global cues; IT, banks among top drags
On the domestic front, the Indian stock market indices ended marginally lower tracking weak global cues amid concerns over interest rates staying high for an extended period and its impact on the global economy.
The Sensex closed 78.22 points, or 0.12%, lower at 65,945.47, while the Nifty 50 eased 9.85 points, or 0.05%, to settle at 19,664.70.
On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹2,333.03 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,579.28 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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