Rising US Yields Drive USD/INR Near Record High
The Indian Rupee (INR) has been under pressure against the US Dollar (USD), reversing some of its gains from the previous day. The USD/INR pair is trading near a record high of 96.10, driven by rising US yields.
The 10-year US Treasury yield has reached a 20-year high of 5.31%, making risk-oriented assets less attractive and supporting the dollar. Fed officials have been highlighting ongoing inflation risks tied to energy supply disruptions, which is fueling expectations for prolonged tight monetary policy.
Upcoming US labor data, including September's Nonfarm Payrolls (NFP) release on Friday, will be closely watched by traders to gauge the Federal Reserve's next policy steps. Market participants expect a 62.4% chance of no interest rate change this month and a 29% probability of no change in October.
The USD/INR technical picture remains constructive, with the pair staying above its 20-day exponential moving average (EMA) at 95.74. Immediate support is identified at the 20-day EMA at 95.7263, while resistance stands at the all-time high near 97.00.