Indian rupee faltering rally faces returning oil pressure, surging US yields

The Indian rupee is expected to open below 94 per dollar on Friday, after slipping past that level in its steepest daily fall in nearly three weeks, Business Recorder reported. The currency has struggled to push through the 94 mark for three sessions, despite recent equity inflows, and bankers say speculation has grown that the Reserve Bank of India is buying dollars or oil companies are seeking dollars in the spot market.

A stronger oil price and rising US Treasury yields are adding to the pressure. Brent crude has climbed to $96 a barrel after attacks on Saudi energy infrastructure and shipping disruption in the Strait of Hormuz, while the 10-year US yield moved above 5%; markets are pricing in a 25-basis-point Federal Reserve increase in December, with a smaller chance of a 50-basis-point move.