Rupee Gains Strength as US Dollar Weakens Amid Treasury Buybacks

The Indian rupee has gained strength against the US dollar in early trade on August 20, rising by 17 paise to 95.56.

This appreciation comes after the US Treasury announced plans to double its buyback operations for longer-dated Treasury bonds, pushing down the value of the US dollar.

Amit Pabari, MD at CR Forex Advisors, noted that lower long-term yields and concerns around fiscal support can reduce the appeal of dollar assets.

The rupee's rise is also influenced by a weak dollar index, which has fallen to its lowest level since late May, according to Pabari.