A pullback in the dollar and US Treasury yields slowed the rupee's slide toward its May all-time low of 96.96 per dollar. The rupee closed at 96.78 on Thursday, with Reserve Bank of India intervention helping keep it below that level.
The Indian rupee is expected to open largely flat after closing at 96.78 to the dollar on Thursday, near its lifetime low of 96.96 hit in May. Traders said the Reserve Bank of India intervened to keep the currency from breaching that level and is expected to continue leaning against a break.
Persistently elevated oil prices, portfolio outflows and higher US Treasury yields have continued to pressure the rupee. The currency weakened past key levels after the RBI's policy decision on Wednesday. A bank currency trader said the rupee could break 97 and possibly fall further.
US Treasury yields and the dollar index fell on Thursday, while Asian currencies edged higher. Brent crude climbed 4% to an intraday high near $106 a barrel before cooling after US President Donald Trump said Washington would not attack Iran before next month's US elections, citing productive talks to halt the war.
