Rupee hits fresh all-time low of 96.95 against US dollar in early trade
The Indian rupee slipped to a fresh all-time low of 96.95 against the US dollar in early trade on Wednesday, as elevated crude oil prices, uncertainty surrounding the Iran conflict and rising US Treasury yields continued to drive capital outflows from emerging markets. Foreign Institutional Investors turned net sellers after three consecutive sessions of buying, offloading equities worth Rs 2,457.49 crore on Tuesday, exchange data showed. The benchmark 10-year US Treasury yield surged to about 4.67%, while the 30-year yield hit 5.2%, its highest since 2007. US President Donald Trump warned that Washington could resume military strikes on Iran within two or three days if Tehran failed to accept US peace terms, despite previously cancelling a planned attack following appeals from Gulf allies. Meanwhile, persistent inflation concerns linked to the Iran conflict raised expectations that US interest rates may remain higher for longer.
