Forex
Rupee Plunges: US Treasury Yields and Oil Prices Send INR into Free Fall
The Indian Rupee is expected to continue its downward trend against the US Dollar on Tuesday, after experiencing a significant decline last week.
The USD/INR pair surged 1.1% to near 95.55 in the previous week, driven by higher US Treasury Yields and rising oil prices.
A further increase in both US Treasury Yields and oil prices could accelerate pressure on the Indian Rupee, according to strategists at Brown Brothers Harriman (BBH).
They expect the Federal Reserve (Fed) to hike interest rates by 25 basis points to a target range of 3.75%-4.00% on Wednesday, marking its first hike since July 2023.