Rupee Slips to Fresh Low Against Dollar Amid Rising Oil Prices

The Indian rupee opened lower against the US dollar on October 1, weighed down by rising oil prices and higher US Treasury yields. It started trading at 95.95 per dollar, down 13 paise from Wednesday's close of 95.82.

Finrex expects the rupee to trade around 95.99 this morning after the RBI-induced closure yesterday at 95.83, as the dollar index rose to 101.58 following US November inflation figures that showed a slight moderation.

The 10-year yield of the US reached its highest level since 2002 at 5.30%, pushing all asset classes lower. This has exporters selling near the 96.00 level and importers buying dips, as they did yesterday evening.

Asian currencies traded mixed against the dollar in early trade, with the Indonesian rupiah gaining 0.49% and the Chinese renminbi rising 0.02%. However, the South Korean won fell 0.23%, followed by the Japanese yen, down 0.27%. The Philippines peso declined 0.12%, while the Taiwan dollar slipped 0.14%. The Malaysian ringgit and Singapore dollar weakened 0.15% and 0.10%, respectively, as the Thai baht eased 0.10%.

The dollar held near a two-month high on Thursday, supported by an extended rise in US Treasury yields driven by concerns over persistent global price pressures stemming from the Middle East war.