The rupee fell sharply today against USdollar. The rupee ended 32 paise lower at 74.37 against the UScurrency.
Gold jumped to a five-month high and bitcoinhit a record as investors sought inflation hedges.
Oil pulled back sharply from near seven-yearhighs after U.S. President Joe Biden said his administration was looking forways to reduce energy costs.
Meanwhile, the dollar index, which gauges thegreenback's strength against a basket of six currencies, rose by 0.08 percentto 94.03. "As the inflows in the two IPOs getting subscribed are tepid,the dollar-rupee was bought yesterday from 73.86. Today, there could beoutflows of Nykaa and maybe some inflows of Paytm," said Anil KumarBhansali, Head of Treasury, Finrex Treasury Advisors.
Bhansali further added, "Importers tokeep buying near to 74.00 and below. Exporters will wait for 74.40 and 74.50before they begin to sell."
At the interbank foreign exchange market, thelocal currency opened at 74.11 and witnessed a high of 74.06 and a low of 74.42against the US dollar in the day trade.
On the domestic equity market front, the BSESensex ended 80.63 points or 0.13 percent lower at 60,352.82, while thebroader NSE Nifty declined 27.05 points or 0.15 percent to 18,017.20.
Inflationary pressures are also brewing inthe labor market, with other data on Wednesday showing the number of Americansfiling claims for unemployment benefits fell to a 20-month low.
Benchmark 10-year Treasury yields jumped themost in seven weeks to as high as 1.592 percent on Wednesday. The Treasurymarket is closed globally Thursday for a U.S. holiday.