Swati Bhagat

MUMBAI, (Reuters) – The Indian rupee fell against the US dollar on Monday, following losses in stocks and weighed down by sharp increases in global prices. Bond yields also fell from their session highs due to short-covering.

As fears about tight supply increased, oil prices rose to the highest level in almost three weeks. The West is likely to impose more sanctions on Russia as the top exporter. [O/R]

India imports nearly two-thirds (23%) of its oil, and rising prices cause inflation to rise and increase the trade and current account deficits.

Partially convertible rupees were trading at 76.28/29 USD versus 76.1750, where it closed on Wednesday. It touched an earlier low of 76.43 in the session. This was its lowest level since March 22nd.

For holidays, Indian financial markets closed Thursday and Friday.

After previously rising to a peak of 7.26%, the 10-year benchmark bond yield fell 3 basis points to 7.18% at 0828 GMT.

We saw consolidation in bonds following the weak open. “Stocks have also been down quite some, so they are falling quite a bit.” However, with the availability of weekly supply, yields shouldn’t be affected unless RBI (Reserve Bank of India), does something,” stated a senior trader from a foreign banking.

Indian stocks fell to three weeks lows after losses in IT stocks following Infosys’ (NYSE:), 9% crash on missed quarterly profit estimates. Inflation concerns also contributed to the sentiment. ()

India’s annual wholesale inflation rate rose to 14.55%, according to data. It was the second consecutive year of double-digit growth as companies struggle to cope with rising input prices and pass these higher prices onto consumers.

Rahul Bajoria chief economist at, stated that domestic inflation will remain high due to supply shortages and price rises in many input goods as a result of the Russia-Ukraine war. This sets the stage for central bank front-loaded tightening. Barclays (LON:).