Rupee to benefit from dollar retreat, plunging US yields; oil surge tempers impact
Executive Brief • Key Highlights
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- ✓The Indian rupee is likely to draw support from a retreat in the dollar and a plunge in US Treasury yields at Friday’s open.
- ✓A currency trader said, "The jump in oil prices will more than offset that relief." Rising oil costs could still weigh on the local currency today.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Indian rupee is likely to draw support from a retreat in the dollar and a plunge in US Treasury yields at Friday’s open, although another surge in oil prices could still weigh on the currency.
The rupee is expected to open flat to marginally higher, per traders, having settled at 95.26 to the dollar on Thursday.
A fresh bout of AI-related jitters sparked a flight to safety in markets, driving investors into US Treasuries, pushing the two-year yield down 8 basis points to its lowest level in seven weeks. The 10-year Treasury yield slipped to 4.90%, down 46 basis points from its recent peak.
The dollar, however, failed to benefit from safe-haven demand, with the dollar indexfalling to 101.70 with the decline in US yields weighing on the currency. Asian currencies traded flat to modestly higher.
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