- The rupee opened at an all-time low of 96.85 against the US dollar on Tuesday
- The currency has depreciated for 13 consecutive calendar days amid global pressures
- RBI reportedly sold dollars in the market to curb the rupee's continued weakness
The rupee continues its slide, to open on an all-time low of 96.85 in trade on Tuesday, as elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the domestic unit. The rupee has depreciated for the 13th straight calendar day.
After opening, it slumped as much as 96.93 against the greenback. It hit the $96 mark last Friday.
Traders said the RBI was in the market selling dollars to curb rupee weakness, according to Bloomberg reports.
The yield on the 30-year U.S. Treasury bond also surged to 5.18% on Tuesday, reaching its highest level since the eve of the 2007 global financial crisis. The broad sell-off in long-term debt has pushed yields — which move inversely to bond prices — significantly higher across the curve. The 10-year Treasury yield also climbed, reaching 4.66%, its highest level in over a year.
The sharp surge comes on the back of mounting investor angst amid stubborn inflation, surging crude prices and expanding US government budget deficits. This is coupled with tensions in the Middle East, a key factor driving the volatility in oil prices, which in turn, has sparked fears of a energy-driven inflation.
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