Rupee Surges Against Dollar Amid US Treasury Bond Buyback Boost

The Indian rupee strengthened by 17 paise to 95.56 against the US dollar in early trade, supported by the weakness of the greenback after the US Treasury announced a higher buyback of longer-dated government bonds.

The US Treasury's decision to increase its bond buybacks from $2 billion to $4 billion, starting September 9, pushed US long-term yields lower and narrowed the dollar's yield advantage, weighing on the greenback.

According to Amit Pabari, MD of CR Forex Advisors, 'Lower long-term yields and concerns around fiscal support can reduce the appeal of dollar assets.'

Firm crude prices continued to weigh on the rupee, with Brent crude trading at $91.91 a barrel in futures trade.