Indian currency fell to a record low against the US dollar Reuters reported. The rupee trading at 61.12/13 per dollar at 0908, after hitting a session low of 61.16, not far from an all-time low of 61.21 hit on July 8.
Traders expect good dollar demand from importers to hurt the rupee. The benchmark 10-year bond yield was trading up 4 basis points at 8.24 percent.
Indian government bond yields seen opening with a bearish tone on Tuesday, tailing weak sentiments for the rupee. The benchmark 10-year bond yield closed trading at 8.20 percent on Monday, down 8 basis points. Reuters reported. The weaker rupee is expected to put pressure on the bond yield curve, dealers say.
The Indian rupee has slumped nearly 15 percent since May, when the possibility of scaled-back bond purchases in the United States prompted foreign cash to flee emerging markets around the world.
India’s central bank reacted last month with several steps to support the currency, but the rupee continued its slide Tuesday, falling to 61.71 per U.S. dollar by late afternoon.
On currency watch: Australia’s currency rose against the U.S. dollar Tuesday, beating back losses that came after the country’s central bank pushed the key interest rate down to a record low Reuters reported.