Stronger US Treasury yields and job data lift the US Dollar, pressuring the Indian Rupee ahead of key US employment figures.
The Indian Rupee weakened against the US Dollar on Wednesday, with the USD/INR pair trading near 94.72. A surge in US Treasury yields, up 0.18% to 4.47%, and a stronger US Dollar reduced demand for risk-sensitive currencies like the INR.
US bond yields jumped over 2% on Tuesday following stronger-than-expected JOLTS job openings data, which showed 7.594 million new jobs in May, exceeding estimates of 7.3 million. The US Dollar Index rose 0.16% to 101.33, reflecting broad Greenback strength.
Markets now await the US Nonfarm Payrolls report for June, expected to show 110K new jobs. Fed rate hike expectations remain elevated, with an 82% chance of at least one increase this year.