The Indian rupee depreciated 20 paise to open at 95.17 against the US dollar on Wednesday, 8 July, as a sharp rise in crude oil prices and higher US Treasury yields weighed on investor sentiment amid renewed geopolitical tensions in the Middle East.
The domestic currency had posted its strongest single-day gain in more than three weeks on Tuesday, supported by heavy dollar selling in the non-deliverable forwards (NDF) market. Before that recovery, the rupee had declined nearly 1% over the previous week.
The rebound in crude oil prices has intensified inflation concerns, triggering a selloff in US Treasuries. The yield on the benchmark 10-year US Treasury note climbed to 4.5650%, its highest level in nearly a month.
Meanwhile, the US dollar index edged above 101, while most Asian currencies and regional equity markets traded lower.
(more to come)