Re falls 14ps to close at 83.57/$
Rising global crude oil prices and a surge in US treasury yields amid expectations of a delay in rate cut in the US may also pressurise the rupee
Mumbai: The rupee depreciated 14paise to close at 83.57 against the US dollar on Tuesday, weighed down by a negative trend in domestic equities and a strong greenback against major crosses overseas amid geopolitical tensions. Forex traders said a weak appetite for riskier assets and recent foreign capital outflows also dragged down the local unit. At the interbank foreign exchange market, the local unit opened at 83.51 and finally settled at 83.57, registering a loss of 14paise from its previous close.
On Monday, the rupee declined 6paise to settle at 83.44 against the US dollar. According to Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, the 10-year US bond yields rose to 4.66 per cent, the highest since November 2023. Weak domestic markets and simmering geopolitical tensions too weighed on the rupee. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent higher at 106.23.
The US dollar rose to a five-month high, following weak yuan, retail sales and safe-haven demand amid Iran-Israel tensions, Choudhary added.
