MUMBAI: The Indian rupee logged its strongest one-day gain since June on Monday, aided by dollar inflows related to the rebalancing of MSCI’s global equity indexes, alongside softness in the dollar and lower US bond yields.
The rupee closed at 84.2875 against the US dollar, up 0.2% from its previous close, its biggest single-day gain since June 3.
The currency rose to 84.2550 during the session, its highest since Nov 7.
The dollar index and Treasury yields kicked off Asia trading on the backfoot as markets reacted to US President-elect Donald Trump’s nomination of investor Scott Bessent for the post of Treasury secretary.
Bessent, who has spent his career in finance, is seen as a comforting choice for markets and expected to keep a steady hand on government finances.
The dollar index was last quoted at 106.8, down 0.5% from its closing level on Friday. US Treasury yields were lower with the 10-year yield down 7 basis points at 4.34%.
“It looks like geopolitics and the diverging US-eurozone macro story will keep the dollar bid into year-end after all,” ING Bank said in a note, pegging the dollar index in a 106.5-107.5 range for the week.
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