Indian Rupee Hits Record 96.3875 per Dollar as $110 Oil and Bond Yields Deepen Slide
Updated
Updated · Reuters · May 18
Indian Rupee Hits Record 96.3875 per Dollar as $110 Oil and Bond Yields Deepen Slide
8 articles · Updated · Reuters · May 18
The rupee fell to an all-time low of 96.3875 per dollar on Monday before closing at 96.3450, down 0.4% and marking a seventh straight session of losses.
A global bond selloff and elevated energy prices drove the move, with U.S. 10-year yields hitting 4.631%, India's 10-year yield rising 6 basis points and Brent crude hovering near $110 a barrel.
The currency has dropped 2% over the past seven trading sessions, and traders said Reserve Bank of India intervention kept losses from running deeper.
Weak capital flows are adding pressure: overseas investors have sold more than $23 billion of Indian stocks and bonds since March as higher import costs strain the current account.
HSBC expects India to post a roughly $65 billion balance-of-payments deficit in the fiscal year ending April 2027, pointing to a third straight annual shortfall.
Is India's central bank fighting a losing battle to prop up a rupee that needs to fall?
As the Iran war sinks the rupee, can India escape its reliance on Middle Eastern oil?
Will soaring oil prices finally force India to embrace a green energy revolution?