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Rupee slides to near seven-week lows as oil jumps and US yields rise
USD/INR touched about 96.20 after crude futures surged and 10-year US Treasury yields moved toward 4.66%, with investors awaiting June US CPI and Fed testimony.
The Indian rupee weakened against the US dollar on Tuesday, with USD/INR hitting a fresh seven-week high near 96.20, according to FXStreet. The move was attributed to higher oil prices and rising US Treasury yields, both of which reduced the appeal of the rupee.
Crude oil futures rose sharply, with the MCX Crude Oil contract expiring July 20 opening 4.2% higher to around Rs. 7,673, the highest level in almost a month. FXStreet noted that import-dependent economies such as India often struggle when oil prices climb.
On the US rates front, 10-year Treasury yields were up about 0.3% to near 4.62%, approaching an 18-month high of 4.66%. The higher-yield backdrop was also described as a headwind for riskier assets.
The broader market focus later in the session will be on US Consumer Price Index data for June, alongside Fed Chairman Kevin Warsh’s testimony. FXStreet also pointed to recent comments from Fed Governor Christopher Waller, saying another hot inflation reading would be treated as a clear signal for tightening rather than background noise.
Latest closeWTI crude $78.04 ▲9.3%