The Indian Rupee recorded a fresh low, sinking 33 paise as a surge in global bonds, along with consistently higher Brent crude prices, dampened the currency.
The domestic currency was trading at 96.86 against the greenback after ending the previous session at 96.53, which was also low.
The rupee, which has fallen more than 7 percent since the start of the year, is the worst-performing emerging Asian currency. This week alone the rupee is down 0.6 percent.
It had briefly staged a recovery in late March and early April after intervention measures by the Reserve Bank of India (RBI) triggered heavy unwinding of speculative forex positions by banks. According to industry experts, the Indian currency currently is facing pressure from multiple global triggers, including a stronger dollar, rising US yields, expensive crude oil and persistent demand for dollars from importers.
Analysts also warned that persistent weakness in the rupee could increase imported inflation risks for India by making fuel, electronics and other overseas purchases more expensive.
Meanwhile, Gold prices nudged lower on Wednesday, as rising Treasury yields and a firm dollar outweighed optimism over a potential U.S.-Iran peace agreement.
Spot gold was down 0.3% at $4,467.59 per ounce, as of 0233 GMT. In the previous session, bullion hit its lowest level since March 30. U.S. gold futures for June delivery lost 0.9% to $4,471.10.
As per the latest retail market rates, 24-carat gold is trading around ₹15,705 per gram, while 22-carat gold is priced near ₹14,396 per gram. Silver prices are hovering close to ₹2,84,900 per kilogram in the domestic bullion market.
Meanwhile, silver continues to trade at elevated levels compared to long-term averages, supported by industrial demand as well as investment buying. Unlike gold, silver prices are more sensitive to global manufacturing trends, making the metal more volatile during uncertain economic conditions.
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