Currencies

Mumbai, May 19: The rupee remained under pressure on Tuesday as elevated crude oil prices, persistent foreign fund outflows and weakness across Asian currencies continued to weigh on sentiment, keeping the currency near record lows against the US dollar. The rupee was trading at 96.3625 per dollar after touching an all-time low of 96.3875 in the previous session, with traders expecting continued volatility amid fragile global risk appetite and concerns over India’s widening trade deficit. To be sure, the rupee had started two paise lower today at 96.37 per dollar Some Support The rupee...

Asian emerging market currencies have weakened amid higher US real yields, a stronger US Dollar, and elevated oil prices. Oil importers such as the Indian rupee (INR) and Philippine peso (PHP) are described as most exposed, with the Indonesian rupiah (IDR) also under pressure due to sensitivity to US yields and domestic factors. The MSCI EM Currency Index closed the week of 15 May 0.9% lower, its worst weekly performance since early March. The 60-day correlation between Brent crude and the Bloomberg Dollar Spot Index is reported at 0.55, the...