The rupee opened lower against the US dollar on Monday, extending losses from the previous session, as a fresh flare-up in US-China trade tensions weighed on emerging market currencies.
At 09:07 AM, the rupee was trading at 70.26 a dollar, down 66 paise from its Friday’s close of 69.60. The home currency opened at 70.06, its lowest level since May 17 and touched a high and a low of 70.06 and 70.29 a dollar, respectively.
In the currency market, the US dollar was on the back foot against traditional safe-haven currencies amid concerns over a sharp escalation in the Sino-US trade war.
China on Friday vowed to fight back against US President Donald Trump’s abrupt decision to slap 10 percent tariffs on the remaining $300 billion in Chinese imports, a move that ended a month-long trade truce.
Mirroring the concerns, oil extended losses with US crude off 31 cents at 55.35 and Brent down 58 cents at $61.31.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,056.55 crore on Thursday, provisional data showed.
In debt markets, the yields on the 10-year government bonds were up 0.24 percent to 6.37 percent from its previous close of 6.35 percent. Bond yields and prices move in opposite directions.
First Published: IST