Indian Rupee: Weakens For Sixth Consecutive Session

The Indian rupee weakened further against the dollar in early trades on Monday, 23 April 2018 falling for the sixth consecutive session, amid foreign capital outflows. Sustained demand for the American currency from importers and dollar strength against other currencies overseas, bolstered by rising US bond yields, weighed on the domestic unit. Lower opening in local shares also failed to cheer the domestic unit.

The domestic currency opened at Rs 66.16 against the dollar and dropped to a low of 66.2325 so far during the day. It touched a high of 66.1450 in intraday trades. In the spot currency market, the Indian unit was last seen trading at 66.23 so far during the day. On Friday, the rupee had crashed below the key 66 level to close at a 13-month low of 66.12 against the US currency, hit by a resurgent dollar, firming crude prices and a more hawkish tone of the Reserve Bank.

Domestic benchmark indices were trading lower in early trade, tracking negative leads from Asian markets. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 52.15 points or 0.15% at 34,363.43. The Nifty 50 index was down 6.15 points or 0.06% at 10,557.90. Overseas, Asian stocks were trading lower as investors kept an eye on rising US Treasury yields.

US stocks ended lower on Friday, as weakness in technology and consumer staples shares offset the latest batch of corporate earnings, which largely continued to beat expectations. While earnings were the primary driver of sentiment last week, investors lately grew concerned about a jump in bond yields that reflect rising inflation expectations.

Meanwhile, the dollar opened the week rising against other major currencies as supported by the steep rise in U.S. Treasury yields last Friday. This weeks currency market is occupied by a slew of economic data, as investors will see inflation data from Australia, Japan and the U.S. to look for cues. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 90.15, up 0.07%. The greenback climbed up to the 90 level after being subdued in the 89 range in the previous week.