Rupee Breaches 96 to Two-Month Low
The Indian rupee weakened to around 96.13 per dollar, breaching the key 96-per-dollar level for the first time in two months, as higher US Treasury yields and elevated oil prices intensified pressure on the currency. The 10-year US Treasury yield climbed 6 basis points to 5.24%, near a nearly two-decade high, as rising oil prices fueled concerns over stickier inflation and further Federal Reserve rate hikes. Markets now see nearly a 70% probability of another Fed rate increase in October, up sharply from less than 20% a month earlier, while the dollar index hovered near a two-month high. Oil prices also rose on concerns over prolonged supply disruptions in the Middle East. The breach of 96 could prompt the RBI to step up intervention, with the central bank having greater capacity to intervene following the recent buildup in foreign exchange reserves from its special forex measures.
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13 per dollar, breaching the key 96-per-dollar level for the first time in two months, as higher US Treasury yields and elevated oil prices intensified pressure on the currency. 24%, near a nearly two-decade high, as rising oil prices fueled concerns over stickier inflation and further Federal Reserve rate hikes. Markets now see nearly a 70% probability of another Fed rate increase in October, up sharply from less than 20% a month earlier, while the dollar index hovered near a two-month high. Oil prices also rose on concerns over prolonged supply disruptions in the Middle East.
The breach of 96 could prompt the RBI to step up intervention, with the central bank having greater capacity to intervene following the recent buildup in foreign exchange reserves from its special forex measures.