Rupee falls to 5-month low, bond yields continue to rise
Rupee falls to 5-month low, bond yields continue to rise
On Wednesday, the rupee ended at 61.5/dollar, a five-month low, compared with its previous close of 60.85/dollar, owing to increased demand for dollars after data showed the US was on a recovery path. There is concern the US might resort to raising interest rates sooner than expected, due to which emerging markets such as India will see outflows.
The rupee opened at 61.04/dollar and, during intra-day trade, touched a low of 61.53/dollar.
On March 5, it had closed at 61.76 a dollar. Since the beginning of this financial year, the currency has depreciated three per cent.
"On Wednesday, the Reserve Bank of India (RBI) intervened through state-run banks, but in small volumes. There was not much dollar supply," said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
RBI's foreign exchange reserves are only $23 million short of its all-time high of $320.79 billion, recorded on September
