Chandigarh, June 13: The Indian rupee fell to a new record on Monday and breached the 78 against the dollar for the first time ever, after closing at its weakest level of 77.93 in the previous session.
The Indian rupee fell to a new low of 78.28 per dollar, while the benchmark 10-year bond yield climbed to 7.60 percent, its highest level since February 28, 2019.
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Moreover, the domestic currency has been under pressure over the last few sessions due to rising global crude oil prices, a strengthening dollar, and a steady outflow of foreign funds from the local market due to which last week, the rupee fell 21 paise against the dollar.
Earlier, in the previous session, the rupee had tumbled to its previous all-time low of 77.93 against the dollar on aggressive Fed tightening expectations as US inflation jumped to a more than four-decade high.
Global Head of Markets at ING Chris Turner said that, "A phrase starting to be used more broadly amongst the central bank community is the need for 'more forceful' monetary tightening to address inflation."
"Central bankers driving real interest rates higher will be a continued headwind for risk assets and pro-cyclical currencies. This is a dollar-positive environment. As above, one is starting to hear of the need for 'more forceful' monetary tightening around the world now," he added.
The dollar, as a result, climbed to a near four-week high against a basket of currencies.
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Meanwhile, Equity benchmark indices opened in the red with Sensex down by 1432.52 points and Nifty by 410.10 points.
-PTC News