Indian Rupee Extends Losses

2026-07-01 03:51 By Mariene Camarillo 1 min. read

The Indian rupee hovered around 94.7 per dollar, extending its recent losses as rising US Treasury yields strengthened the greenback and weighed on Asian currencies.

Higher bond yields dampened demand for emerging-market assets, while renewed dollar buying and weaker regional currencies kept pressure on the rupee.

Market sentiment remained cautious after stronger-than-expected US labor market data reinforced expectations that the Federal Reserve could keep interest rates higher for longer.

Investors are now awaiting additional US employment data for further clues on the Fed's policy outlook.

Meanwhile, higher oil prices added another headwind for the currency, as firmer crude prices typically increase India's import bill and demand for dollars.

Oil gained support after a Qatari official said US envoys in Doha would not hold high-level talks with Iran, casting doubt on near-term diplomatic progress and reducing expectations of a potential increase in Iranian oil supplies.



News Stream
Indian Rupee Extends Losses
The Indian rupee hovered around 94.7 per dollar, extending its recent losses as rising US Treasury yields strengthened the greenback and weighed on Asian currencies. Higher bond yields dampened demand for emerging-market assets, while renewed dollar buying and weaker regional currencies kept pressure on the rupee. Market sentiment remained cautious after stronger-than-expected US labor market data reinforced expectations that the Federal Reserve could keep interest rates higher for longer. Investors are now awaiting additional US employment data for further clues on the Fed's policy outlook. Meanwhile, higher oil prices added another headwind for the currency, as firmer crude prices typically increase India's import bill and demand for dollars. Oil gained support after a Qatari official said US envoys in Doha would not hold high-level talks with Iran, casting doubt on near-term diplomatic progress and reducing expectations of a potential increase in Iranian oil supplies.
2026-07-01
Indian Rupee Halts Gains as Oil Rises
The Indian rupee hovered around 94.5 per dollar, halting gains as a stronger US dollar and weakness across Asian currencies weighed on sentiment. Persistent importer hedging, subdued foreign equity inflows, and broad-based dollar strength continued to limit the currency’s upside. Still, lower crude oil prices helped cushion further losses, with Brent crude trading near $72.50 per barrel, close to levels seen before the Iran conflict in late February. Meanwhile, investors assessed data showing India's industrial production rose 5.1% year-on-year in May 2026, up from 4.9% in April. Looking ahead, market participants are also awaiting a slate of domestic economic data, including India's Manufacturing PMI on Wednesday and Services PMI on Friday, for further insights into domestic economic activity. In addition, attention will be on the US June nonfarm payrolls report due on Thursday, a key release that could shape expectations for Federal Reserve policy.
2026-06-29
Rupee Rises on Falling Crude Prices
The Indian rupee strengthened to around 94.3 per dollar,reversing earlier losses and positioning for further gains as crude oil prices fell below levels seen before the Iran conflict. In the previous session, the rupee briefly neared the 95-per-dollar level before rebounding, supported by likely Reserve Bank of India intervention and comments from RBI Governor Sanjay Malhotra that weighed on forward premium levels. Support for the rupee was reinforced by a steep correction in global energy markets following the announcement of a 60-day negotiating period between the United States and Iran. The retreat in energy costs has eased worries about imported inflation for major oil-importing economies such as India. Crude oil has slipped below $80 per barrel, dropping beneath levels recorded before the Iran conflict escalated, and US crude is approaching the $70 mark. The Indian market will be closed on June 26 and will resume trading on Monday, June 29.
2026-06-25