- Advertisment -
HomeWorldRupee falls to 81.09 in early trade; Do you know why?...

Rupee falls to 81.09 in early trade; Do you know why?Achi News

- Advertisment -

Achi News Updates,

The Indian rupee registered yet another record decline as it touched 81.09 points against the US dollar in early trade, on the back of higher 10-year US Treasury yields, fresh multi-year highs from importers and demand for the dollar.

On Thursday, the local unit suffered its biggest single-session percentage decline since February, due to a more bleak US Federal Reserve rate outlook, traders said.

In the last hours of Thursday’s trade, the local unit accelerated its decline and closed at the day’s low.

“Based on yesterday’s momentum, the pair (USD/INR) will be around 81 in early trade,” said a currency spot dealer at a Mumbai-based bank.

“You can expect more importer activity today, with speculators testing the RBI again.”

The rupee was the biggest loser among its Asian peers on Thursday after a period of outperformance.

The 10-year US Treasury yield rose above 3.70% overnight and the two-year yield rose to 4.16%.

The recent sell-off in the bond market was fueled by dot-plot predictions by central bank officials that rates could reach 4.4% by the end of the year.

That represents about 125 basis points more rate hikes than the two remaining meetings in 2022.

The S&P 500 index fell to its lowest level in more than two months.

The US benchmark gauge is down 21% year-to-date. In contrast, Indian equities were marginally higher for the year.

A drop in the rupee premium to a ten-year low will help importers marginally, traders said.

The 1-year rupee forward premium implied yield fell below 2.75 percent on Thursday.

(With inputs from Reuters)

Read all Latest Business News And Breaking news Here


- Advertisment -

Most Popular