Indian rupee falls amid yuan decline

The Indian rupee depreciated on Monday due to a decline in the offshore Chinese yuan and importer dollar bids at the end of the month, while dollar-rupee forward premiums slightly increased.

The rupee was trading at 85.0575 against the US dollar at 10:10 am IST, lower than its previous close of 85.0150.

The offshore Chinese yuan decreased by 0.2 per cent to 7.30 as China’s bond yields also dropped along with softer US yields. China’s 10-year bond yield reached a record low before levelling off.

Traders anticipate that the rupee will continue to gradually depreciate in the near future, with the Reserve Bank of India (RBI) expected to intervene to help reduce volatility.

Attribution: Reuters

Subediting: M. S. Salama