The Indian rupee weakened to 86.68 per dollar on Wednesday, down 42 paisa from its previous close amid worries of a growth slowdown in the backdrop of
The rupee hit a three week low at 86.71/$1 during the session, and was down 0.5% in the day. The rupee closed at 86.23/$1 on Tuesday, LSEG data showed.
Traders expect rupee to continue to be under pressure and “gradual depreciation in foreign exchange might also act as a part shock absorber for the sharply higher reciprocal tariffs,” DBS Bank said in a note.
Meanwhile, yields of the 10 year US treasury bill were trading as high as 4.5% and have risen by 60 basis points in the past two days.
Yields of the 10 year Indian government bond closed at 6.49% up two basis points from its previous close amid a risk off environment. Yields opened 6.48% on Wednesday, rose to 6.52% and made lows of 6.42% in the last hour of the trade, CCIL data showed.
The weighted average call rate (WACR), which indicates banks’ overnight cost of borrowing, closed at 5.91%, versus the previous close of 6.15%, after the RBI cut rates by 25 basis points to 6%.
m.economictimes.com