Rupee, Bonds Vulnerable To Oil Price Shocks

Economic Times Markets · stocks

The Indian rupee and government bonds are poised for a volatile week, influenced by elevated oil prices and rising expectations of a Reserve Bank of India rate hike. Global bond yields are also at multi-year highs, adding to market pressure. The rupee closed Friday at 95.8150 per dollar, with traders anticipating continued RBI interventions to maintain stability. Meanwhile, Indian government bonds face selling pressure as liquidity is withdrawn from the banking system, pushing benchmark yields higher. Investors are closely watching US economic data and Federal Reserve policy cues.