The rupee slipped by 37 paise to 67.45 against the US dollar in early trade today as crude oil prices zoomed past $76 per barrel level. This also surged the demand for the American currency, dragging the rupee down from its previous close.
The domestic currency had closed at 67.08 a dollar on Tuesday, up 0.09% from its previous close of 67.14. RBI intervention and stray dollar demand were suspected to aid the falling value.
The dollar has strengthened against major global currencies overseas from the rallying crude oil prices. The oil rates were pushed after US President Donald Trump announced the withdrawal from the international nuclear deal with Iran indicating that trade sanctions on the country could be reimposed.
Treasury yields were also higher. On Tuesday, 10-year sovereign bonds were down by another 4 basis points to 7.58 percent.
The rupee may trade in a range of 67.20 to 67.60 against a dollar throughout the day.
Meanwhile, the benchmark BSE Sensex fell 82.12 points, or 0.23 percent, to 35,134.20 in early trade today. Also read: Markets Open Lower As Trump Withdraws Iran Nuclear Deal
The lower opening of the domestic stock markets and increased demand for the US dollar from importers also weighed on the Indian rupee.