MUMBAI, May 21 (Reuters) – The Indian rupee is set to rise at Thursday’s open, helped by a pullback in oil prices that dragged down U.S. Treasury yields, a pressure point on the currency in recent sessions.<\/p>\n
\n The rupee is expected to open in 96.66-96.70 range, per traders, having settled at 96.82 on Wednesday. The currency is on a nine-day losing streak, shaving off 2.5% of its value and repeatedly making new lows against the U.S. dollar.<\/p>\n
\n Based on recent price action, any opening dip in dollar\/rupee is likely to be bought into, an FX salesperson at a bank said, echoing bankers who have noted that the smallest of dips are drawing importers.<\/p>\n
\n Brent crude dropped 5.6% on Wednesday and was last hovering near the $105 a barrel level. Investors continued to monitor headlines for signs of progress in U.S. negotiations with Iran to resolve the conflict.\u00a0<\/p>\n
\n U.S. President Donald Trump said on Wednesday that negotiations were in the final stages while warning of further attacks unless a deal is made.<\/p>\n
\n The selloff in U.S. Treasuries on concerns that a higher inflation outlook could lead to a Federal Reserve rate hike, halted, following the drop in oil prices.\u00a0<\/p>\n
\n The 10-year yield fell nearly 10 basis points on Wednesday to slip below the 4.60% level.\u00a0<\/p>\n
\n Still, analysts cautioned that yields could rise further, adding pressure on the rupee and other emerging market currencies, with rates in Europe, the U.K. and Japan tracking the U.S. move.<\/p>\n
\n “Hard to shake off the bearish dynamic without a solution in the Middle East,” ING Bank said in a note.<\/p>\n
\n Meanwhile, the Reserve Bank of India on Wednesday announced a dollar\/rupee buy-sell swap auction worth $5 billion with a tenor of three years, scheduled for May 26, which bankers said will pull down forward premiums.<\/p>\n
(Reporting by Nimesh Vora; Editing by Harikrishnan Nair)<\/p>\n
\n By Nimesh Vora<\/p>\n","protected":false},"excerpt":{"rendered":"MUMBAI, May 21 (Reuters) – The Indian rupee is set to rise at Thursday’s open, helped by a…\n","protected":false},"author":2,"featured_media":459460,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60,123],"class_list":["post-459459","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/459459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=459459"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/459459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/459460"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=459459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=459459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=459459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}