The Indian rupee weakened to hit a near one month low against the US dollar due to a spoke in crude oil prices amid escalating tensions in West Asia after a US airstrike killed a top Iranian commander. The death of Iranian commander Qassem Soleimani, who led the Revolutionary Guards’ Quds force, heightened fears of an armed conflict between the US and Iran that could easily pull in other countries, media said. Since 1 December, oil prices have risen over 13.3 per cent supported by the progress in US-China trade talks and the political unrest in Iraq. Government bond yields fell after Reserve Bank of India (RBI) announced its third ‘operation twist’. The Reserve Bank of India plans to buy three bonds for a combined Rs 10000 crore on 6 January.
The 10-year bond yield was trading at 6.497 per cent from its previous close of 6.503 per cent. Since 1 April, the rupee has weakened 3.5 per cent while foreign investors have bought nearly $6.08 billion in Indian equities and $2.22 billion in debt.
Read EquityPandit’s Nifty Outlook for the Week