Rupee seen opening at 95.14-95.18 as oil prices, US yields rise
The currency’s recent strength surprised market participants, with dollar selling pushing it towards the stronger side of its expected range.
The Indian rupee is expected to open at 95.14-95.18 on Tuesday, according to traders, despite rising U.S. Treasury yields and higher oil prices. The central bank's persistent intervention and near-term momentum helped offset these factors, allowing the currency to rise 0.2% to a near four-week high of 95.1625 on Monday. Traders anticipate further appreciation, but past momentum-driven moves have not sustained, and importers may increase hedging at current levels.
India's strong GDP figures are helpful but marginal. The Reserve Bank of India's FX forward book, which reached an all-time high of $137 billion in July, limits the rupee's potential to appreciate further. U.S. Treasury yields surged to a one-and-a-half-year high of 4.778% due to tensions between the U.S. and Iran, which boosted oil prices to $91.14 a barrel.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
