Rupee Weakens Against Dollar Amid Elevated US Yields

The Indian rupee weakened on Thursday but remained above 96 per US dollar after state-run banks stepped in to stabilize it. Higher US Treasury yields kept the dollar strong, pulling money toward dollar assets and away from emerging markets.

This development is not an isolated incident as several Asian currencies slipped due to elevated US yields. Traders are focused on what the Federal Reserve does next, making Friday's US jobs report a key checkpoint for rate expectations and the dollar.

In India, bond yields edged up as attention shifted to next week's Reserve Bank of India policy decision. Investors are watching for any signal on how long rates may stay restrictive in the country.