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Indian rupee strengthens near 95.60 despite higher US yields

The move comes as 10-year US Treasury yields rose about 1.8% to around 4.71%, the highest in 18 months, which typically pressures risk-sensitive currencies.

Reported · Written up by our desk · EM Currencies

The Indian rupee edged higher against the US dollar in the opening session on Thursday, with USD/INR down toward 95.60, according to FXStreet.

FXStreet said the gain reflected a tug of war with higher US Treasury yields. In the Asian session, 10-year US Treasury yields were about 1.8% higher at around 4.71%, the highest level seen in 18 months, a backdrop that can reduce demand for currencies seen as more sensitive to risk.

The dollar also found early support after a sharp fall the previous day following the Federal Reserve’s monetary policy announcement. The Fed left interest rates unchanged in the 3.5% to 3.75% range for a fifth straight meeting, while expectations have grown that the Fed may need to raise rates again this year to maintain price stability.

FXStreet added that oil prices were trading lower early on Thursday even as Middle East tensions continued. By press time, the MCX Crude Oil contract expiring on August 19 was about 1.1% lower, around the article’s cited level.

Latest closeWTI crude $84.41 ▲6.5%

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