“,”elements”:[]}],”thumb_big”:”https://etimg.etb2bimg.com/thumb/msid-116615780,imgsize-1621296,width-1200,height=765,overlay-etauto/industry/rupee-to-hover-near-record-low-amid-rise-in-us-treasury-yields.jpg”,”thumb_small”:”https://etimg.etb2bimg.com/thumb/img-size-1621296/116615780.cms?width=150&height=112″,”time”:”2024-12-24 09:02:04″,”is_live”:false,”prime_id”:0,”highlights”:[],”highlights_html”:””,”also_read_available”:false,”body”:”
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The Indian rupee may open near its all-time low on Tuesday and continue to trade with a mild depreciation bias, pressured by a rise in U.S. bond yields, with traders expecting the domestic central bank to intervene to keep a lid on sharp declines.
The one-month non-deliverable forward indicated that the rupee will open at 85.10-85.11 to the U.S. dollar, compared with 85.1175 in the previous session. The rupee had weakened to its lifetime low of 85.12 on Monday.
The domestic currency hit an all-time for the fifth consecutive trading session, inching past its previous record low of 85.10 hit on Friday.
U.S. Treasury yields rose overnight, with the 10-year yield reaching its highest level in nearly seven months, after additional supply of debt at a time when many traders are inactive. [US]
The dollar is buoyed by U.S. economic exceptionalism, a widening interest rate gap and elevated tariffs, setting the stage for more gains possibly next year, a traders with a brokerage said.
“We maintain our view of further US dollar strength in Q1 as Trump tariff announcements coincide with an economic backdrop that reinforce a dollar-supportive divergence in monetary policy,” MUFG Bank said in a note.
The Reserve Bank of India‘s frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve’s outlook for policy rates in 2025, concerns about India’s slowing economic growth and tepid capital flows.
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The one-month non-deliverable forward indicated that the rupee will open at 85.10-85.11 to the U.S. dollar, compared with 85.1175 in the previous session. The rupee had weakened to its lifetime low of 85.12 on Monday.
- Updated On Dec 24, 2024 at 09:05 AM IST
“>
The Indian rupee may open near its all-time low on Tuesday and continue to trade with a mild depreciation bias, pressured by a rise in U.S. bond yields, with traders expecting the domestic central bank to intervene to keep a lid on sharp declines. The one-month non-deliverable forward indicated that the rupee will open at 85.10-85.11 to the U.S. dollar, compared with 85.1175 in the previous session. The rupee had weakened to its lifetime low of 85.12 on Monday. The domestic currency hit an all-time for the fifth consecutive trading session, inching past its previous record low of 85.10 hit on Friday. U.S. Treasury yields rose overnight, with the 10-year yield reaching its highest level in nearly seven months, after additional supply of debt at a time when many traders are inactive. [US]
The dollar is buoyed by U.S. economic exceptionalism, a widening interest rate gap and elevated tariffs, setting the stage for more gains possibly next year, a traders with a brokerage said.
“We maintain our view of further US dollar strength in Q1 as Trump tariff announcements coincide with an economic backdrop that reinforce a dollar-supportive divergence in monetary policy,” MUFG Bank said in a note. The Reserve Bank of India‘s frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve’s outlook for policy rates in 2025, concerns about India’s slowing economic growth and tepid capital flows.
- Published On Dec 24, 2024 at 09:02 AM IST