Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated on Monday and posted a record closing low against the dollar as a surge in U.S. inflation raised speculation about more aggressive steps by central banks boosting a selloff in risk assets.
However, depreciation was capped on central bank intervention.
The Rupee ended at 78.04/dollar compared with 77.83/dollar close on Friday.
The local currency hit an all-time low of 78.28 in early trade
The local unit also tracked a broader decline in Asian and EM peers this Monday.
Investors will be keenly India's consumer inflation data for May, due later today, is expected to provide cues on likely policy steps by the RBI in upcoming meetings.
The domestic inflation rate is forecast to have eased to 7.1% last month, from 7.79% in April, according to a poll.
NDF is currently trading at 77.99/78.05 this Monday afternoon vs. a close at 78.11 on Friday.
Tuesday's range for the USDINR pair is 77.80-78.15.
Indian bond yields jumped on Monday tracking a spike in U.S. Treasury rates ahead of the Federal Reserve policy decision this week.
The benchmark 6.54% bond ended at 7.60%, the highest since February 27, 2019 and against 7.52% close on Friday.
The Dollar Index rose this Monday afternoon in Asian trade supported by speculation that the Fed could continue its aggressive monetary policy path in the 2nd half of the year to curb inflation.
Rest of the session range for the Dollar Index is $104.68-$105.00.
The Euro, the Sterling and the Yen is trading weaker against the Greenback this Monday afternoon trade.
Rest of the session range for the Euro is $1.0350-$1.0480.