Dollar strengthening due to Russia-Ukraine crisis: Bank of America

The Indian bond market or the yield has not moved much despite a lot of disruption that’s seen globally as well as higher oil prices. In an interview to CNBC-TV18, Jayesh Mehta, managing director and country treasurer at Bank of America spoke at length about what the trajectory for 10-year in India as well rupee would be.

Mehta said, “Rupee is doing weaker against the USD and we are seeing that because it’s all about a flight to safety in the current situation and that’s why the dollar is appreciating, but we (rupee) are not depreciating against euro. This is something which we will have to wait out. I do not think there is any fundamental play that is coming in. It’s just the dollar strengthening which is there in place because of Ukraine situation.”

However, said Mehta, crude oil at USD 100/bbl does impact but need to see how that will pan out in the next 10-15 days. “On the trade side, oil is one thing but we will have to see how long it sails above USD 100/bbl,” he said.