Mumbai, May 20 (PTI) on Tuesday shut down 16 money against the US dollar, weakened domestic markets and US Treasury yields at 85.58 against Rs 85.58.
Forex traders stated that the recent bounce in the US 10 -year yield reflects increasing concerns over fiscal and monetary policies, which leads to higher borrowing costs.
The outflow of foreign funds and positive crude oil prices also weighed rupees. However, the weak US Dollar Index stressed the negative side, he said.
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In the interbank foreign currency, the domestic unit opened at 85.47 and went between the Intra-Day high of 85.39 and the lower level of 85.65 against Greenback. The unit finished the session at 85.58, declining 16 money at its previous closing level.
On Monday, the rupee appreciated 15 money to settle at 85.42 against the US dollar.
Research analyst at Mirae Asset Choudhary Anuj Choudhary-Mirae Asset Chodkhan said, “We hope that Rupee FII will trade with a negative bias between the outflow and weak domestic markets.
The dollar index, which detects the strength of greenback against a basket of six currencies, was trading 0.19 percent less at 100.23.
Dilip Parmar, senior research analyst at HDFC Securities, said the rupee has recently faced Headwind, who has become one of the worst artists among Asian currencies.
He said, “This depreciation has been attributed to concerns in growing Kovid -19 cases in some Asian regions, outflow of foreign funds from domestic equity, high global bond yields and a common recession in market spirit,” he said.
Global oil benchmark, Brent crude, futures fell 0.14 percent to $ 65.45 per barrel.
In the domestic equity market, the 30-cheer BSE Sensex declined by 872.98 points or 1.06 percent, closed at 81,186.44, while the Nifty fell 261.55 points or 1.05 percent to 24,683.90.
According to exchange data, foreign institutional investors (FII) on Monday launched a price of Rs 525.95 crore on a pure basis. PTI DRR HVA
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