Indian rupee opened weak by 12 paise against the US dollar on Monday after crude prices rose amid intensifying geopolitical tensions.
At 09:15 AM, the rupee was trading at 73.89 a dollar, down 12 paise, from its Monday’s close of 73.82. The home currency opened at 73.77 and touched a high and a low of 73.77 and 73.92 a dollar, respectively.
On Monday, the rupee snapped its three-session gaining streak to end 26 paise lower at 73.83 due to a spurt in dollar demand.
International benchmark Brent crude for December delivery rose 9 cents, or 0.1 percent, to $80.87 per barrel as investors were worried over US relations with the world’s top oil producer Saudi Arabia over the disappearance of journalist Jamal Khashoggi.
The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 to the dollar.
Rising US interest rates and bond yields have encouraged investors to pull out funds from emerging markets to pocket better returns, analysts said.
Unabated foreign fund outflows also dragged down the domestic currency. Foreign institutional investors (FIIs) sold shares to tune of Rs 1,322 crore Friday, provisional data showed.
In debt markets, the yields on the 10-year government bonds rose 0.21 percent to 7.94 percent after closing at 7.92 percent on Friday. Bond yields and prices move in opposite directions.
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