Forex
Rupee Slumps as US Treasury Yields Hit New Highs
The Indian Rupee extended its previous week's decline against the US Dollar on Tuesday, with USD/INR rising to near 95.85 in the opening session.
The 10-year United States Treasury Yields have hit record highs of 5%, and prolonged upside in oil prices are contributing to the rupee's underperformance.
US Treasury Yields have extended their rally, with economists at ING predicting a 25bp Federal Reserve rate hike in September.
The RBI is likely to consider the impact of inflationary pressures on its monetary policy decision.