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Rupee slips as US Treasury yields keep rising

USD/INR climbed to about 96.43, while 10-year US Treasury yields were up roughly 0.24% to near 5.32.

Reported · Written up by our desk · Major Pairs

The Indian rupee weakened versus the US dollar on Tuesday, with the USD/INR pair rising to around 96.43, the highest level in over two months, according to FXStreet.

FXStreet attributed the move to continuously higher global bond yields, noting that US 10-year Treasury yields were up about 0.24% to near 5.32 after reaching a fresh two-decade high near 5.35 on Monday.

The outlet also pointed to ongoing foreign fund outflows from India, saying foreign institutional investors had offloaded shares worth Rs. 14,183.36 crore in the first two trading days of October.

FXStreet added that worries about persistent global inflationary pressures linked to energy supply shocks from the Middle East war are supporting the yield rise, and said the yen-like risk-off backdrop reduces demand for riskier assets such as the rupee.

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