Author: Nishtha Mehrotra | EQMint
The Indian rupee weakened 0.23% to 95.96 per dollar, marking a one-week low, as rising crude oil prices and higher US Treasury yields put pressure on domestic financial markets.
The benchmark 10-year government bond yield climbed 6 basis points to 7.11%, its highest level since May 21, while the five-year yield rose 8 basis points to 6.82%.
Brent crude moved above $106 per barrel amid concerns over supply disruptions linked to the Iran conflict, raising concerns over inflation and India’s import costs. State-run banks were seen selling dollars around the 96-per-dollar level, with market participants attributing some of the support to possible Reserve Bank of India (RBI) intervention.
Meanwhile, the dollar index remained near 101.2 after stronger US economic data supported expectations of tighter monetary policy. Weakness in other Asian currencies also added pressure on the rupee.
Market participants are closely watching crude prices, US yields, geopolitical developments and central-bank policy signals for further direction.
Source: https://flipit.me/geyq
Disclaimer: This article is for information purposes only and is not investment advice.
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