2026.07.0103:51:59UTC+00Indian Rupee Extends Losses

The Indian rupee hovered around 94.7 per dollar, extending its recent losses as rising US Treasury yields boosted the greenback and weighed on Asian currencies. Higher bond yields curbed demand for emerging‑market assets, while renewed dollar buying and weakness in regional currencies kept the rupee under pressure.

Market sentiment stayed cautious after stronger‑than‑expected US labor data reinforced expectations that the Federal Reserve may keep interest rates higher for longer. Investors are now awaiting further US employment figures for additional signals on the Fed’s policy path.

At the same time, firmer oil prices posed an additional headwind for the rupee, as higher crude costs typically widen India’s import bill and increase dollar demand. Oil found support after a Qatari official said US envoys in Doha would not hold high‑level talks with Iran, clouding the near‑term diplomatic outlook and tempering expectations of any imminent rise in Iranian oil supplies.