Rupee in Tuesday's trade (September 8, 2020) opened lower at 73.62 versus previous day's close of 73.34 per US dollar. Yield on benchmark 10-year bond however fell sharply to 6.05% versus previous close of 5.994%.
The RBI's bid to let the rupee appreciate is to keep inflation levels tamed. Earlier the dollar were being absorbed by the central bank to keep the rupee from appreciating.
This is as India-China tensions along the border have intensified with firing reported.
Oil prices were dragged by more than 1% after Saudi Arabia hinted at supply cuts and there was seen a drag in demand owing to coronvirus led disruption.
Meanwhile, Indian indices opened flat fluctuating between gains and losses.