According to Reuters, the Indian rupee experienced an upward trend on Tuesday, attributed to central bank intervention and a bolstered offshore Chinese yuan.
Trading at 83.3375 against the US dollar, the rupee marked a 0.1 percent increase from its previous close.
The Reserve Bank of India is believed to have engaged in selling US dollars to bolster the rupee, which could encounter resistance at 83.20. Concurrently, the dollar index saw a decline to 104.2, while most Asian currencies recorded marginal gains. The offshore Chinese yuan strengthened to 7.24, aided by support from Chinese state-run banks.
ING Bank anticipates a gradual depreciation of the yuan. Moreover, dollar-rupee forward premiums saw a decrease, with the 1-year implied yield standing at 1.54 percent, the lowest observed in nearly four months.
In Asian trading, the 1-year US Treasury yield rose to 5.01 percent. Investors are eagerly awaiting US personal consumption expenditure (PCE) inflation data slated for later this week.
