The yield on the 10-year benchmark bond rose 7 basis points to 6. 76 per cent for the day, the biggest single day rise in four months.
Mumbai: The Indian rupee ended 59 paise weaker on Wednesday at 95. 56 against the US dollar tracking global crude oil prices which surged over 6 per cent after the US President Donald Trump tweeted that the ceasefire with Iran is over.
The renewed escalation between US and Iran triggered a sharp rebound in crude oil prices, sending shockwaves across global financial markets. International crude oil prices rose nearly 3. 5 per cent to trade around the $74 per barrel mark, while domestic crude futures surged more than 6. 5 per cent, breaking above the ₹7,000 level to trade near ₹7,150. The yield on the 10-year benchmark bond rose 7 basis points to 6. 76 per cent for the day, the biggest single day rise in four months.
Concerns rose once again of global supply disruptions as against expectations of supply glut until a day earlier. Traders said that the rupee will face pressure from elevated oil prices. 6. 16 per cent at USD 78. 73 per barrel in futures trade.
At the interbank foreign exchange market, the rupee opened at 95. 15 against the US dollar and traded in the range of 94. 98-95. 61 during the day. It eventually settled at 95. 55 down 59 paise from its previous close. On Tuesday, the rupee appreciated 47 paise to close at 94. 96 against the US dollar.
This was the rupee’s weakest level in over a month which had touched a low of 95. 60, its weakest level since June 11. The Reserve Bank of India had likely intervened in the foreign exchange market to limit the rupee's fall via dollar sales from state-run banks.
Dilip Parmar, research analyst at HDFC Securities said, “The Indian rupee fell the most among the Asian currencies, weighed down by a sharp rise in crude oil prices and risk-off sentiment after US President Donald Trump’s remarks about ending the ceasefire with Iran. Geopolitical concerns have lifted the risk premium amid heightened volatility. In the near term, USD-INR is expected to face resistance at 95. 80 and support at 94. 95, with the bias now favouring dollar bulls. ”
