Rupee Slumps to Two-Month Low Amid Global Risk Aversion

The Indian rupee has slumped to its lowest level in over two months, closing at 96.31 against the US dollar on Thursday due to global risk aversion, rising bond yields, and foreign investor selling.

According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the rupee is expected to trade with a negative bias amid risk aversion in global markets and worries over rising global treasury yields. A strong dollar and surge in global crude oil prices may further pressurize the rupee.

The Reserve Bank of India (RBI) may intervene to support the rupee at lower levels, but for now, the rupee is expected to remain under pressure.