The USD-INR 28 June futures contract also settled on a positive note at 77.97 with a gain of 0.13 per cent. The rising dollar index and benchmark US 10-year yield dragged the local currency down on Monday.ģ) After decade-high inflation numbers, experts believe that the US Federal Reserve will opt for a more aggressive method to cool surging price pressures. It crossed 104-mark again and closed at 104.235 with an increase of 0.99 per cent on Friday. The dollar index climbed to a near four-week high last week.
The benchmark US 10-year yield touched 3.2 per cent on Monday, having gained nearly 12 basis points on Friday after US inflation beat expectations.Ģ) The US dollar index continued to surge higher on Monday on the back hot inflation data and strong US 10-year-yield. The soaring inflation numbers pushed the US 10-year yield. It was the biggest surge in US inflation date since December 1981. Rupee Breaches 78 Per US Dollar: Why is Rupee Falling?ġ) US consumer price index jumped a whopping 8.6 per cent in May. “Some of the reasons behind this weakening includes persistent FII selling from past few months, rising bond yields, increasing oil prices and inflationary pressures for coming quarters,” said Mohit Nigam, head - PMS, Hem Securities. The benchmark 10-year bond yield was trading at 7.60 per cent on June 13, highest since February 28,2019.Īnalysts pointed out multiple factors behind rupee falling to a lifetime low. On the other hand, India’s benchmark 10-year bond yield rose to its highest level in more than three years on Monday.
The rupee lost 21 paise against the greenback last week. A strengthening dollar and US treasury yields, elevated global crude oil prices and a sharp sell-off in equity markets, have kept the domestic currency under pressure. The local currency began the trading 30 paise lower at 78.14 per US dollar on Monday against the close of 77.84 on Friday. The Indian rupee plunged to an all-time low on Monday as it had breached 78-mark against US dollar for the first time.
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