Rupee slips to 95.28 against US dollar as oil, treasury yields remain elevated

Rupee began Friday in red, falling 6 paise to 95.28 against the US dollar in early trade as a firmer greenback and higher US Treasury yields put pressure on the currency.The currency began the session at 95.27 at the interbank foreign exchange market before weakening to 95.28. This followed a 14-paise decline in the previous session, when the rupee ended at 95.22 against the dollar.Forex traders said dollar purchases by importers and profit-taking after the rupee's recent gains had outweighed the favourable global backdrop.The dollar index, which tracks the US currency against a basket of six major currencies, was trading 0.02 per cent higher at 99.95. Brent crude, meanwhile, gained 1.20 per cent to $83.48 a barrel in futures trade.Amit Pabari, MD of CR Forex Advisors, said that rupee could remain vulnerable, with oil prices, the dollar and US yields likely to influence its near-term movement."With oil back near $83, the dollar firm near 100, and US yields elevated, 95.00-95.10 stands out as a solid support for the rupee, and the currency climbing back towards the 96.00-96.20 zone looks like reality. Global developments, particularly around oil prices and the dollar, are likely to remain the key drivers for the rupee in the near term, keeping the overall bias tilted towards weakness," said CR Forex Advisors MD Amit Pabari.Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said the dollar was also receiving support from higher US Treasury yields and renewed geopolitical concerns around the Strait of Hormuz."The rise in US Treasury yields and renewed geopolitical concerns around the Strait of Hormuz are providing some support to the dollar," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.Weakness in the currency came alongside a decline in domestic equities in early trade. Sensex was down 235.36 points at 78,699.80, while Nifty fell 24.30 points to 24,608.25.Foreign institutional investors were net sellers in the equity market on Thursday, offloading shares worth Rs 17.86 crore, according to exchange data.Get the latest Business News and Live updates. Download the TOI app.