The rupee tumbled to the almost 75 a dollar level and the 10-year bond yields remained elevated on Wednesday, shrugging off India’s outlook revision by Moody’s, as international crude oil prices rose to a seven-year high, fuelling concerns about a wider fiscal deficit and rising inflation.
The rupee closed at 74.98 a dollar, briefly touching 74.99 during the day, at which point the Reserve Bank of India (RBI) intervened to prevent it from breaching the psychologically important mark of 75. The rupee’s closing level was its lowest since April 23.
The US dollar index, which measures the greenback’s strength against