Indian rupee ends marginally lower as central bank shields from oil, yield strain

According to Business Recorder, the Indian rupee closed at 95.68 against the dollar on Tuesday, slipping slightly from 95.6025 in the previous session. Traders believed the Reserve Bank of India had likely stepped into several market segments to prop up the currency. That support kept the rupee steady even as other Asian currencies, including the Philippine peso and Indonesian rupiah, weakened.

Pressure came from elevated oil prices and a sharp rise in global bond yields, with long-term borrowing costs in the US, Japan and Germany climbing to multi-decade highs. Thirty-year US Treasury yields hit their highest since 2007. ING analysts warned that a further climb in yields could increase pressure on the US Federal Reserve to act, while the Indian 10-year yield rose 2 basis points to 6.827%.

Indian stocks slipped about 0.3%, tracking weakness in regional equities. Attention now shifts to the minutes of the Reserve Bank of India's August policy meeting, due on Wednesday.