The rupee opened at 74.65 against the US dollar in early trade on Wednesday, rising crude oil prices and a stronger dollar weighed on investor sentiments. The domestic currency further weakened to 74.96, the lowest in two-and-a-half months, while bond yields rose.
The US dollar index rose to a one-year high against key peers on Tuesday ahead of a major payroll report at the end of the week, which could boost the case for the Federal Reserve to launch stimulus as soon as next month. .
“The rupee is expected to depreciate further as rise in crude oil prices as well as a stronger dollar amid apprehensions of US Fed may put further pressure on the rupee,” ICICI Direct said in a note.
Meanwhile, the 10-year bond yield, however, rose 2 basis points to 6.28%, tracking higher US Treasury yields and firming oil prices.
Oil rose to a multi-year high above $83 a barrel on Wednesday, supporting OPEC+’s refusal to increase output more quickly against a backdrop of concerns about tight energy supplies globally. does.
On Monday, the Organization of the Petroleum Exporting Countries and Allies, known as OPEC+, chose to stick with a plan to gradually increase production and not promote it further as the US and other consumer nations are urging.
(with inputs from agencies)
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