Rupee Opens Higher Below 73/$, US Dollar Index Slips Below 90

Rupee in trade on May 21, 2021 opens higher at 72.98 higher on likely gains in the equity market. In the previous day rupee ended at 73.1 per US dollar. The US dollar index has now gone below 90, which can be another problem for the greenback.

The weakness in the US dollar index can be a positive news for Indian markets as Nifty has been historically shown to be sharing a negative relationship with the US dollar

Rupee Opens Higher Below 73/$, US Dollar Index Slips Below 90

In the bond market, the yield on 10-year benchmark government bonds went up to 5.969 percent. On Thursday (May 20, 2021), the RBI conducted purchase of government securities under G-SAP which was decided in the previous RBI's monetary policy announcement.

Oil prices on Friday edged higher after tumbling for 3 days as investors took into account the return of supplies from Iran after the US and Iran are progressing on a nuclear deal. Brent crude futures for July rose 10 cents, or 0.2 percent, to USD 65.21 a barrel by 0032 GMT while US West Texas Intermediate for July was at USD 62.16 a barrel, up 22 cents, or 0.4 percent. But on a weekly basis, the commodity is set for its worst weekly loss since March.

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