Rupee opens lower as crude worries hurt sentiment, bond yields fall

The rupee opened lower against the US dollar on Monday, as higher oil prices fueled growth worries. India is the world’s third-largest oil importer. Higher crude oil prices put pressure on India's trade deficit and thus the rupee.

At 09:06 AM, the rupee was trading at 70.97 a dollar, down 3 paise from its Friday’s close of 70.94. The home currency opened at 71.08 and touched a high and a low of 70.94 and 71.08 a dollar, respectively.

In the currency market, the dollar edged higher against the safe-haven yen after talks in Washington between US and Chinese trade deputies were described as “productive”.

The dollar rose a touch over 0.1 percent to buy 107.70 Japanese yen, with volumes dampened by a public holiday in Japan.

In the commodity markets, oil prices advanced more than 1 percent as tensions in the Middle East supported prices.

International Brent crude futures touched an intraday high of $65.50 a barrel, but eased to $64.97, up 69 cents while US West Texas Intermediate crude futures were at $58.78 a barrel, up 69 cents, after earlier hitting a high of $59.39.

Foreign investors continued with their equity selling spree in the Indian market. They have pulled out a net sum of Rs 4,193 crore from the Indian capital markets so far this month.

In debt markets, the yields on the 10-year government bonds declined 0.11 percent at 6.78 percent from the previous close of 6.79 percent. Bond yields and prices move in opposite directions.