On Tuesday, The Rupee most likely to commence session between 72.65 - 72.75 with weaker note as The safe-haven greenback also found support as investors fretted about the potential fallout from the collapse of a hedge fund, identified as Archegos Capital, although those jitters had eased as the Asian trading day got underway.
India reported the highest daily increase in coronavirus cases in five months on Monday, with the second wave of the disease driven by surging infections in the country's richest state Maharashtra.
INTRADAY RANGE - 72.38 ( 72.53 - 72.84 ) 73.10
GLOBAL OUTLOOKS
Higher yields make a currency more attractive as an investment. Compounding the single's currency woes have been the widening interest rate differentials between German and U.S. yields. The spread for 10-year debt widened to 200 basis points from 150 bps at the start of the year, boosting the dollar.
Asian shares were mixed as global investors shook off worries about a hedge fund default that roiled global banking stocks overnight, while rekindled concerns about inflation pushed bond yields higher.
The dollar climbed to a one-year high against the yen amid a spike in Treasury yields, as accelerating vaccinations and massive stimulus in the U.S. stoked inflation concerns.
U.S. non-farm payrolls report will be closely watched at the end of this week, with Federal Reserve policymakers so far citing slack in the labour market for their continued lower-for-longer stance on interest rates.
Tougher coronavirus curbs in France and Germany have dimmed the short-term outlook for the European economy, while a widening spread between U.S. and German bond yields are adding pressure on the single currency.
Crude prices inched up on a report that Russia would back broadly stable oil output when the Organization of the Petroleum Exporting Countries and allies meet this week.
The token last traded around $57,620. Bitcoin continued its recovery from a slide to as low as $50,360 last week, as Visa's decision became the latest sign of growing acceptance of digital currencies on both Wall Street and Main Street.
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