Indian rupee opened lower against the US dollar on Monday while bond yields edged higher after easing in the previous session.
At 09:15 AM, the rupee was trading at 72.60 a dollar, down 75 paise, from its Friday’s close of 71.85. The home currency opened at 72.52 and touched a high and a low of 71.87 and 72.66 a dollar, respectively.
In a bid to soothe investor concern, the government and the Reserve Bank of India (RBI) over the weekend announced measures including removal of withholding tax on Masala bonds, relaxation for foreign portfolio investors, among others to curb rupee’s fall.
The government has been under pressure from the opposition to stem the rupee fall and cut taxes to check surging fuel prices.
So far this year, the rupee has weakened about 12 percent, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit amid escalation in global trade war tiff.
In debt markets, the yields on the 10-year government bonds rose 0.63 percent to 8.18 percent after closing at 8.13 percent on Friday. Bond yields and prices move in opposite directions.
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First Published: Sept 17, 2018 9:28 AM IST
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