Indian Rupee plummets to 10-month low against the US dollar
What's the story
The Indian Rupee experienced a 10-month low against the US dollar in early trade on Monday. It fell by 16 paise to Rs. 83.01. A strong dollar and a tendency to sell equities by foreign institutional investors (FIIs) in the domestic market affected the Rupee's value. Other Asian currencies also faced a downturn, ranging between 0.2% and 0.6%.
Details
Increased US Treasury yields weakened Asian currencies
The surge in US Treasury yields played a crucial role in affecting Asian currencies, as the two-year yield rose to 4.88% and the 10-year yield increased by 5 basis points to 4.15% on Friday. This development, coupled with a decrease in crude oil prices, contributed to the weakening of the Indian Rupee. Brent crude futures experienced a 0.86% drop to $86.06 a barrel.
What Next?
Weak global cues affected Indian market
On Friday, FIIs sold Indian shares amounting to Rs. 3,073.28 crore, causing the Sensex and Nifty to close in red. Meanwhile, domestic institutional investors (DIIs) net purchased shares worth Rs. 500.35 crore, as per provisional data from exchanges. Today, the Indian equity benchmark indices opened lower due to weak global cues and sell-off pressure. At the time of writing, BSE was down 190 points.