- Rupee is down nearly 6% against US dollar so far this year
- On Wednesday, rupee recovered to 67.85 after falling to 68.13 per dollar
- Trade deficit slightly widened to $13.72 billion in April
Here are 10 updates on dollar-rupee exchange rate (INR vs USD):
1) With oil prices remaining at an elevated level, the rupee could weaken further, say experts. The uncertainty over government formation in Karnataka has also hurt the sentiment.
2) "With oil at the current elevated levels, only sentiments were holding the rupee. Given the post-election uncertainty in Karnataka, fundamentals have again taken over and pushed the dollar to 68 levels. We are expecting dollar to move between 68.25-68.40 levels but upside could be to 67.80," Salil Datar, CEO and executive director, Essel Finance VKC Forex.
3) In global commodity markets, crude oil prices remained near multi-year highs amid concerns US sanctions on Iran may restrict crude exports from a major producer. Brent crude oil was above $78 a barrel.
4) India's trade deficit for 2017/18 fiscal year ending in March grew to $156.8 billion from $105.72 billion in the previous year, mainly driven by a rising oil import bill - a growing concern for the Reserve Bank of India.
5) The dollar was today near five-month high against a group of major currencies, after strong US retail-sales data boosted expectations for economic growth.
6) A surge in benchmark 10-year US Treasury yield above 3 per cent also boosted the US dollar.
7) The dollar index versus a basket of six major peers added 0.1 per cent to 93.335, after rallying to 93.457 overnight, its highest since December 22.
8) The upmove in US dollar has been supported by the yield advantage the United States enjoys over other countries.
9) "The dollar stands to benefit, particularly against the euro, on higher Treasury yields," says a forex expert.
10) Overnight, the US bond yield surged to a seven-year high of 3.095 per cent after US consumer spending numbers.
(With agency inputs)