Home›Forex›Major Pairs›Rupee slips as US yields climb and investors pull back

Rupee slips as US yields climb and investors pull back

USD/INR rose to about 96.43, while US 10-year Treasury yields were near 5.32% after a Monday move close to 5.35%.

Reported · Written up by our desk · Major Pairs

The Indian rupee fell versus the US dollar on Tuesday, with USD/INR moving to around 96.43, the highest level in more than two months, according to FXStreet.

FXStreet cited a steady rise in global bond yields as the driver, noting US 10-year Treasury yields were up 0.24% to about 5.32%. It added that US bond yields hit a fresh two-decade high near 5.35% on Monday.

The outlet also pointed to a risk-off environment tied to the yield surge and said outflows from Indian equities weighed on the currency, with Foreign Institutional Investors offloading holdings worth Rs. 14,183.36 crore in the first two trading days of October.

FXStreet further linked the rally in US yields to concerns about persistent global inflation pressures, including fears connected to energy supply shocks tied to the Middle East war.

More like this

Sources