Rupee closes at ₹95.96 as RBI sells dollars to intervene
Business
The rupee closed at 95.96 against the US dollar on Thursday, dropping by 22 paise thanks to a spike in oil prices and more demand from importers.
With Brent crude hitting $104 a barrel, the RBI had to jump in and sell dollars through state-run banks to keep the rupee from sliding past 96.
India 10-year yield hits 7.11%
Global bond yields are rising (US five-year yields are now at their highest since 2007, and Japan hasn't seen these levels since 1996), which pushed India's 10-year yield up to 7.11%.
Throw in U.S.-Iran tensions and talk of another Fed rate hike, and it's no surprise the rupee is feeling squeezed.
Still, RBI Deputy Governor Poonam Gupta called the rupee's recent slide an "overcorrection" and expects things to settle down.