India Rupee Hits Fresh Low Amid Crude Oil Price Concerns and Rising Bond Yields

Rupee Falls to New Low as War with Iran Continues

The Indian rupee depreciated to a fresh low of Rs 94.79 per dollar on March 27, surpassing the previous record low of Rs 93.98 per dollar in the previous session. The currency traded in a wide range of approximately 70 paise during the day, opening at Rs 94.15 per dollar.

The depreciation of the rupee is attributed to the ongoing war in West Asia, which is now in its fourth week. The war has led to a surge in Brent crude oil prices, which are currently trading at $109 per barrel. The rupee has depreciated by almost 5 percent against the dollar, making it one of the worst-performing currencies in Asia.

Imports, including oil marketing companies, are buying the dollar to hedge against further volatility, putting additional pressure on the rupee. The Reserve Bank of India (RBI) has been intervening intermittently to curb volatility, but to no avail.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In related news, the 10-year benchmark bond yield spiked to 6.9212 percent, a near 15-month high, from 6.8750 percent in the previous trading session. Experts predict that bond yields may cross the psychological 7 percent mark soon.

Key Figures:

• Rs 94.79: Fresh low of the Indian rupee per dollar
• Rs 93.98: Previous record low of the Indian rupee per dollar
• $109: Current price of Brent crude oil per barrel
• 5 percent: Depreciation of the rupee against the dollar
• 6.9212 percent: 10-year benchmark bond yield
• 7 percent: Predicted psychological threshold for bond yields