Indian Rupee: Sees Further Plunge Amid Soaring Dollar Overseas

26 Sep 2022 , 09:14 AM

The Indian rupee is likely to succumb to further losses amid massive strength in the US dollar overseas on expectations of further interest rate hikes by the Federal Reserve. The domestic bond yields are seen tracking US treasury yields and soaring above 7.45% early on Monday, as globally rising interest rates are possibly adding pressure on the Reserve Bank of India to follow suit. The US dollar index is hovering at fresh two decade peaks of 113.60, having hit 114 levels earlier in the day while benchmark US treasury yields are staying close to 3.8%. On Friday, rupee surged to an all time high above Rs 81 per dollar and ended the day at 81.09 as compared to previous close at 80.79 per dollar. At the interbank foreign exchange market, the local currency breached the 81-mark for the first time ever and slumped to 81.23 against the American currency.Powered by Commodity Insights