Noida, Oct 6 (APAC Media): The Indian rupee slipped against the US dollar on Tuesday after opening largely flat, as dollar demand and elevated US Treasury yields weighed on the domestic currency.
The rupee opened at around 96.31 to the US dollar, compared with its previous close of 96.30, before coming under pressure during early trade.
Traders are closely watching for intervention by the Reserve Bank of India (RBI) as the rupee remains near record-low levels. The central bank has been intervening in the foreign exchange market to curb excessive volatility and prevent a sharp decline in the currency.
The dollar remained firm against major currencies, while higher US Treasury yields continued to support the greenback. A stronger dollar generally puts pressure on emerging-market currencies, including the rupee.
Foreign portfolio outflows and sustained demand for dollars from importers have also added to pressure on the Indian currency.
Market participants said the rupee’s near-term movement would depend on dollar strength, crude oil prices, foreign fund flows and the extent of RBI intervention.
Analysts expect the central bank to prioritise containing excessive volatility over defending a specific exchange-rate level.
The rupee has faced persistent pressure recently amid global currency movements and capital outflows. Traders are now awaiting further cues from the RBI and global markets for direction.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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