Rupee closes at 1-week low against US dollar; bond yield rises to 2-month high

Written by | June 1, 2016 | 0

Mumbai: The Indian rupee fell to a one-week low against the US dollar as speculation over the Reserve Bank of India (RBI) governor Raghuram Rajan’s term kept sentiment jittery. This is the third session the rupee has closed lower.

Rajan’s current term as the central bank’s chief ends on 4 September and he is eligible for an extension of another two years from the government. While no official statements have been made yet, concerns have emerged that in the absence of such as extension, critical reforms spearheaded by him such as new monetary policy framework and bank balance sheet clean-up will be hit.

The home currency closed at 67.45, a level last seen on 24 May, down 0.29% from its previous close of 67.26. The rupee opened at 67.22 per US dollar and touched a high and a low of 67.13 and 67.46, respectively.

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