Indian Rupee Vs dollar: US bond yields, Crude oil, domestic indices weakens rupee today; stays over 66-mark
The Indian rupee was trading at 66.668 above 0.249 points or 0.38% against US dollar index.
The Indian rupee was trading on a depreciated note on Wednesday, against US benchmark dollar index at the interbank foreign exchange. In early opening, the domestic unit surged 21 paise to 66.59 against the US dollar due to appreciation of the greenback amid rising US bond yields and surge in global crude oil prices. Apart from this, even lower opening in the domestic equity market too weighed on the investor sentiment.
At around 1104 hours, the Indian rupee was trading at 66.668 above 0.249 points or 0.38% against US dollar index.
Dealers also attributed the rupee's fall to increased demand for the US currency from importers due to month-end demand and sustained foreign capital outflows, reported by PTI.
As per Reuters report, rising U.S. rates underpinned the U.S. dollar in the currency market.
Meanwhile, the benchmark Sensex was trading at 34,550.18 down by 66.46 points or 0.19%, however, in early opening the index fell 79.94 points, or 0.23% to 34,536.70. On the other hand, the Nifty 50 slumped by 27.85 points or 0.26% trading at 10,586.50.
In previous trading session, the Indian rupee recovered by 10 paise to 66.38 against the US dollar due to fresh selling of the American currency by exporters and banks.
While foreign portfolio investors (FPI) made an outflow of Rs 576.79 crore together in equity, debt and hybrid market on Tuesday, as per NSDL data.