The rupee opened lower against the US dollar on Monday, as higher oil prices fueled growth worries. India is the world’s third-largest oil importer. Higher crude oil prices put pressure on India's trade deficit and thus the rupee.
At 09:06 AM, the rupee was trading at 70.97 a dollar, down 3 paise from its Friday’s close of 70.94. The home currency opened at 71.08 and touched a high and a low of 70.94 and 71.08 a dollar, respectively.
In the currency market, the dollar edged higher against the safe-haven yen after talks in Washington between US and Chinese trade deputies were described as “productive”.
The dollar rose a touch over 0.1 percent to buy 107.70 Japanese yen, with volumes dampened by a public holiday in Japan.
In the commodity markets, oil prices advanced more than 1 percent as tensions in the Middle East supported prices.
International Brent crude futures touched an intraday high of $65.50 a barrel, but eased to $64.97, up 69 cents while US West Texas Intermediate crude futures were at $58.78 a barrel, up 69 cents, after earlier hitting a high of $59.39.
Foreign investors continued with their equity selling spree in the Indian market. They have pulled out a net sum of Rs 4,193 crore from the Indian capital markets so far this month.
In debt markets, the yields on the 10-year government bonds declined 0.11 percent at 6.78 percent from the previous close of 6.79 percent. Bond yields and prices move in opposite directions.
