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Mint
22-07-2025
- Business
- Mint
Drop in US Treasury yields helps Indian rupee
MUMBAI, July 22 (Reuters) - The Indian rupee was marginally stronger on Tuesday and dollar-rupee forward premiums ticked up as concerns over the economic fallout of U.S. President Donald Trump's trade war drove U.S. Treasury yields, the greenback and crude oil prices lower. The rupee ticked up to 86.2650 per U.S. dollar by 11:10 a.m. IST, slightly higher than its close at 86.2925 in the previous session. The dollar index was steady at 97.9 in Asia trading after falling 0.6% on Monday, tracking a decline in U.S. Treasury yields that saw the 10-year yield touch a near two-week low of about 4.35%. Short-term U.S. Treasury yields declined as well, which helped boost far-tenor dollar-rupee forward premiums. The 1-year dollar rupee implied yield rose to an over two-week high of 2.03%, while a fall in rupee liquidity in the banking system helped lift very near-tenor dollar-rupee swap rates. Indian assets largely sidestepped a media report that a trade deal between India and the U.S. is unlikely before August 1 with equities and the rupee clinging to slight gains while the yield on the benchmark 10-year bond was little changed. Steep reciprocal levies on exports to the U.S. are slated to go into effect next month with India likely to face a 26% charge in the absence of a deal. "The rupee's trajectory remains tilted toward further weakness, with both the 86.00 and 86.20 levels now breached. This opens the door for a move toward 86.50–86.80," said Amit Pabari, managing director at FX advisory firm CR Forex. In addition to uncertainty on global trade dynamics, muted foreign portfolio flows have also been a sore point for the rupee. Overseas investors have net sold about half a billion dollars of local stocks in July so far while year-to-date outflows stand at nearly $9.5 billion. (Reporting by Jaspreet Kalra; Editing by Ronojoy Mazumdar)
Mint
21-07-2025
- Business
- Mint
Rupee dips to near one-month low, pressured by dollar bids from foreign banks
MUMBAI, July 21(Reuters) - The Indian rupee slipped on Monday to its weakest level in nearly one month, pressured by dollar demand from foreign and local private banks, and modest weakness in its regional peers. The rupee declined to 86.2725 per dollar by 11 a.m. IST, down 0.1% on the day. The currency hit its weakest level since June 23 at 86.35 in early trading. Most Asian currencies were trading lower, while the dollar index was little changed, with investors keeping an eye on trade negotiations ahead of an August 1 deadline to strike deals with Washington. "If the discussions fail or get delayed, Indian exporters could face fresh pressure, adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather," said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, a narrow arbitrage between non-deliverable and onshore rates helped nudge dollar-rupee forward premiums higher, with the one-month forward premium ticking up to 12.25 paisa, its highest level in three weeks. The one-year dollar-rupee implied yield was also a tad higher at 1.99%. The arbitrage isn't "too large," a swap trader at a state-run bank said. The trader said the dollar-rupee daily fix was last quoted at a 0.20/0.30 paisa premium, signalling heightened demand for dollars at the reference rate. On the day, India's benchmark equity indexes, the BSE Sensex and Nifty 50, were trading higher, while the yield on the benchmark 10-year bond was little changed. (Reporting by Jaspreet Kalra; Editing by Subhranshu Sahu)
Reuters
21-07-2025
- Business
- Reuters
Rupee dips to near one-month low, pressured by dollar bids from foreign banks
MUMBAI, July 21(Reuters) - The Indian rupee slipped on Monday to its weakest level in nearly one month, pressured by dollar demand from foreign and local private banks, and modest weakness in its regional peers. The rupee declined to 86.2725 per dollar by 11 a.m. IST, down 0.1% on the day. The currency hit its weakest level since June 23 at 86.35 in early trading. Most Asian currencies were trading lower, while the dollar index was little changed, with investors keeping an eye on trade negotiations ahead of an August 1 deadline to strike deals with Washington. "If the discussions fail or get delayed, Indian exporters could face fresh pressure, adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather," said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, a narrow arbitrage between non-deliverable and onshore rates helped nudge dollar-rupee forward premiums higher, with the one-month forward premium ticking up to 12.25 paisa, its highest level in three weeks. The one-year dollar-rupee implied yield was also a tad higher at 1.99%. The arbitrage isn't "too large," a swap trader at a state-run bank said. The trader said the dollar-rupee daily fix was last quoted at a 0.20/0.30 paisa premium, signalling heightened demand for dollars at the reference rate. On the day, India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, were trading higher, while the yield on the benchmark 10-year bond was little changed.
Business Recorder
14-07-2025
- Business
- Business Recorder
Indian rupee falls to over two-week low on corporate dollar bids, outflows
MUMBAI: The Indian rupee weakened past the 86 per U.S. dollar mark on Monday to its lowest level in more than two weeks, weighed by corporate dollar demand and equity-related outflows, traders said, amid uncertainty over U.S. trade policies. The rupee closed at 86.9850 against the U.S. dollar, down 0.2% from its close at 85.80 on Friday. The currency hit a low of 86.0475 earlier in the day, its weakest level since June 25. Dollar demand from a large Indian conglomerate and other companies pressured the rupee alongside likely outflows from Indian equities, traders said. India's benchmark equity indexes, the BSE Sensex and Nifty 50, declined 0.3%, even as most regional peers ticked higher. Stocks in Europe fell and the common currency weakened marginally against the dollar after U.S. President Donald Trump threatened a 30% levy on the region's imports over the weekend, deepening his ongoing trade war. U.S. equity futures were in the red as well, with the S&P 500 futures down 0.3%. 'The moves have not been larger since investors see these threats as a Washington negotiating tactic to push the other side over the line into a deal,' ING said in a note. Indian rupee ends nearly flat, importer dollar bids hinder attempts to rise India is among the few large U.S. trade partners that have not yet received a tariff letter. Indian negotiators are expected to head back to the U.S. soon for another round of talks, centred on disagreements over auto components, steel and farm goods. 'All things considered, chances of the rupee gaining ground remain limited,' said Amit Pabari, managing director at FX advisory firm CR Forex. Pabari expects the rupee to face resistance around the 85.40-85.50 level. Focus is now on India's consumer inflation data due later in the day. Benign food prices and a high base likely helped Indian inflation slow to a more than six-year low at 2.50% in June, according to a Reuters poll of 50 economists.
Time of India
14-07-2025
- Business
- Time of India
Rupee falls to over two-week low on corporate dollar bids, outflows
The Indian rupee weakened past the 86 per U.S. dollar mark on Monday to its lowest level in more than two weeks, weighed by corporate dollar demand and equity-related outflows, traders said, amid uncertainty over U.S. trade policies. The rupee closed at 86.9850 against the U.S. dollar, down 0.2% from its close at 85.80 on Friday. The currency hit a low of 86.0475 earlier in the day, its weakest level since June 25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 이 게임은 대부분의 TV 프로그램보다 더 재미있어요 – 게다가 무료예요. Raid: Shadow Legends 플레이하기 Undo Dollar demand from a large Indian conglomerate and other companies pressured the rupee alongside likely outflows from Indian equities, traders said. India's benchmark equity indexes, the BSE Sensex and Nifty 50, declined 0.3%, even as most regional peers ticked higher. Stocks in Europe fell and the common currency weakened marginally against the dollar after U.S. President Donald Trump threatened a 30% levy on the region's imports over the weekend, deepening his ongoing trade war. Live Events U.S. equity futures were in the red as well, with the S&P 500 futures down 0.3%. "The moves have not been larger since investors see these threats as a Washington negotiating tactic to push the other side over the line into a deal," ING said in a note. India is among the few large U.S. trade partners that have not yet received a tariff letter. Indian negotiators are expected to head back to the U.S. soon for another round of talks, centred on disagreements over auto components, steel and farm goods. "All things considered, chances of the rupee gaining ground remain limited," said Amit Pabari, managing director at FX advisory firm CR Forex. Pabari expects the rupee to face resistance around the 85.40-85.50 level. Focus is now on India's consumer inflation data due later in the day. Benign food prices and a high base likely helped Indian inflation slow to a more than six-year low at 2.50% in June, according to a Reuters poll of 50 economists.
