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This article is more than 3 year old.

Rupee crosses fresh record low of 72.50 against dollar, bond yields spike

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Indian rupee opened at fresh record low against the US dollar on Monday while the 10-year bond yield spiked as concerns over rising crude oil prices and trade war tensions continued to hurt investor sentiment.

Rupee crosses fresh record low of 72.50 against dollar, bond yields spike
Indian rupee fell further against the US dollar to hit another record low on Monday while the 10-year bond yield spiked as concerns over rising crude oil prices and trade war tensions continued to hurt investor sentiment.
At 12:06 PM, the rupee was trading at 72.55 a dollar, down 45 paise, from its Friday’s close of 72.10. The home currency opened at 72.101 and touched a high and a low of 72.08 and 72.19 a dollar, respectively.
The Reserve Bank of India intervened heavily in the forex market on Friday, mounting a formidable defence of the 72 rupee to the dollar mark in a reversal of its light-handed approach in the last few weeks.
So far this year, the rupee has weakened 11.5 percent, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively.
Khoon Goh, head of Asia research at Australia & New Zealand Banking Group, expects rupee to weaken further in the near term in the emerging market currency sell off.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit amid escalation in global trade war tiff.
Mirroring concerns, the yields on the 10-year government bonds maintained its steady uptrend on fear of more rate hikes and touched multi-year high of 8.08 percent after closing at 8.03 percent on Friday. Bond yields and prices move in opposite directions.