Rupee Hits Three-Month Low as Brent Crude Surges Past $108
The Indian rupee has hit a three-month low as Brent crude oil prices surged past $108 per barrel and US bond yields breached the 5% mark. The currency closed at 95.95 against its previous close of 95.55.
According to traders, the RBI sold dollars at weaker levels, adding to the rupee's pressure. 'The rupee has come under renewed pressure today after a sharp rise in domestic and global bond yields,' said a trader from a private sector bank.
The currency traded in a narrow range of 95.96 and 95.75, while dollar demand from oil companies kept it under continuous pressure.
Traders are now watching to see if the RBI will continue to defend the currency near 95.59-96 levels. A consistent move above 96 per dollar levels could leave the currency open for 96.10-96.20, they said.