Rupee weakens as Silicon Valley Bank collapse sparks global risk aversion

The rupee weakened sharply against the US dollar on Tuesday as a global wave of risk aversion sparked by the collapse of California-based Silicon Valley Bank (SVB) hit emerging-market (EM) currencies and dragged stock markets lower.

The domestic currency closed at 82.49 per dollar, against 82.13 at the previous close. So far in 2023, the rupee has appreciated 0.3 per cent against the greenback.

A rebound in the dollar index, caused by the global flight to safety of the US currency, took a toll on Asian currencies, including the rupee.

The dollar index had declined sharply in early trade on