The Indian Rupee Falls Below 83/USD For The First Time Since 2022
The Indian rupee dropped below 83 to the U.S. dollar on Monday for the very first time since October 2022, as the leap in the U.S. yields had put pressure on the Asian currencies.
The rupee stayed at 83.0500 to the dollar by 09:06 am IST, which was down from 82.8450 on Friday.
The U.S. 10-year increased to 4.18%, while multiple Asian currencies fell by more than 0.5%.
“Clearly, it’s all about the RBI (Reserve Bank of India),”
as claimed by a dealer at a bank.
“If the RBI does not push it (USD/INR) below 83, you will see a decent-sized move higher.”
The American dollar index, which measures the strength of the U.S. currency against a group of six other currencies, has risen to 103-level. The US 10-year bond yields increased to 4.18% amid a small down stick in the survey of the University of Michigan’s measure of the long term inflation expectations.
This stipulated that “the movement in yields is more about supply,” ANZ mentioned in a note.
A wall of issuance has been in the store over the upcoming months and has instigated worries over the supply, and Fitch’s downgrade of the United States debt has not been of any help either.
Longer maturity yields in Germany and the United Kingdom soared as well on Friday.
“The current steepening pressure on yield curves has little to do with policy rate expectations and warrants watching,”
ANZ further added.
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