Rupee depreciates to lifetime low of 96.86 against U.S. dollar amid inflation worries.
The Indian rupee depreciated by 16 paise to close at a fresh lifetime low of 96.86 against the U.S. dollar. This fall was primarily driven by elevated global crude prices and inflation worries stemming from the West Asia crisis. The rupee opened at 96.89, touched a record low of 96.95, and settled at 96.86. The previous session saw a 50 paise tumble. Factors contributing to the rupee's weakness include a strong dollar and surging U.S. treasury yields, with 30-year yields rising to a two-decade high and 10-year yields to a 16-month high, leading to global market sell-offs.
Key Points
- The Indian rupee hit a fresh lifetime low of 96.86 against the U.S. dollar.
- Elevated global crude prices and the West Asia crisis are stoking inflation worries, contributing to the depreciation.
- A strong U.S. dollar and surging U.S. treasury yields are also major factors.
- U.S. 30-year treasury yields rose to a two-decade high, and 10-year yields to a 16-month high.
- The depreciation led to inflation concerns and sell-offs in global markets.
Exam Facts
- Rupee settled at 96.86 against the U.S. dollar.
- It depreciated by 16 paise on Wednesday.
- U.S. 30-year treasury yields rose to a two-decade high.
- U.S. 10-year treasury yields rose to a 16-month high.
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