Rupee ends 7 paise lower at 83.19 against dollar amid spike in US treasury yields

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rupee closed 13 paise higher at 83.12 against the US dollar. Analysts said hardening US bond yields amid a higher risk of broader conflict in the Middle East weighed on emerging currencies and riskier assets. The US 10 year Treasury yields hit 5% for the first time since 2007.

“Increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield," Vinod Nair, Head of Research at Geojit Financial Services said. Meanwhile, crude oil prices eased on Monday with the benchmark Brent crude declining by 0.35% to $91.84 per barrel. On the domestic equity market front, equity benchmark indices ended in deep red on Monday, extending losses for the fourth-straight session.

The Sensex tanked 825.74 points, or 1.26%, to settle at 64,571.88, while the Nifty plunged 260.90 points, or 1.34%, to 19,281.75. Foreign Portfolio Investors (FPIs) have withdrawn over ₹12,000 crore from Indian equities so far this month, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict. On Friday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹456.21 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹8.53 crore, as per provisional data available on the exchanges.