The Indian rupee opened 16 paise lower at a 10-month low against the US dollar on Monday weighed down by a strong American currency amid a spike in US Treasury yields. The local currency opened at 83.01 a dollar as compared to its previous close of 82.85.
Asian currencies were down between 0.2% and 0.6%. The offshore Chinese yuan dropped to 7.2775 to the dollar, the lowest in one-and-a-half months, Reuters reported.
The two-year US Treasury yield climbed to 4.88%, while the yield on 10-year Treasuries rose 5 basis points to 4.15% on Friday.
Selling by foreign institutional investors (FII) in the domestic equity market also weighed on the local currency.
Meanwhile, Crude oil prices eased on Monday. The Brent crude futures fell 0.86% to $86.06 a barrel, while US West Texas Intermediate crude was at $82.46 a barrel, down 0.88%.
On the domestic front, the Indian equity benchmark indices, Sensex and Nifty opened lower amid weak global cues.
On Friday, the Foreign institutional investors (FIIs) net sodl Indian shares worth ₹3,073.28 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹500.35 crore, as per provisional data available on the exchanges.
