INR hits fresh lifetime low of 96.86/US dollar

PTI

mumbai

Declining for the ninth consecutive session, the rupee depreciated 16 paise to close at a fresh lifetime low of 96.86 against the US dollar on Wednesday as elevated global crude prices amid the West Asia crisis stoked inflation worries.

At the interbank foreign exchange market, the local currency opened at 96.89 against the greenback, then lost further ground to touch a record low of 96.95. It recovered to hit a day's high of 96.65 before settling at the fresh all-time low of 96.86, registering a fall of 16 paise over its previous close. On Tuesday, the rupee had tumbled 50 paise to settle at 96.70 against the dollar.

"Indian rupee hit fresh lows on a strong dollar and a surge in US treasury yields. US 30-year treasury yields rose to a two-decade high, while the 10-year yields rose to a 16-month high. This led to inflation worries and sell-off in global markets, making the markets risk-averse," Anuj Choudhary, research analyst at Commodities Research at Mirae Asset Sharekhan, said.  

Choudhary added that the domestic currency is expected to trade with a negative bias on risk aversion in the global markets amid inflation worries. A strong dollar and rising US Treasury yields have raised inflation concerns and trimmed rate cut expectations. The USD/INR spot price is expected to trade in a range of ₹96.50 to ₹97.10.