Rupee slides to one-week low of 95.96 as oil rally fans rate-hike fears
The rupee fell to a one-week low on Thursday, ending at 95.96 against the dollar — down 23 paise — as a jump in crude prices and stalled US-Iran talks raised fears that inflation could prompt further global rate hikes.
Brent crude's climb back to around $106 a barrel threatens to widen India's import bill, while the US 10-year yield's surge to 5.11 per cent has deepened the risk-off mood across emerging-market currencies.
Currency dealers expect the Reserve Bank of India to step in to smooth volatility as importers rush to cover dollar demand.
Originally reported by The Hindu BusinessLine. Article compiled by the Deccan Age desk.
