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Rupee Rices Above 85/USD Hoisted By Fragile Dollar, Stranger Yuan

Mumbai, May 26 (Reuters) – The Indian Rupee and Other Asian Currencies Extended Their Recent Rallies on Monday, AS Abrupt Shifts in US Trade Policy and CONCERNS Over Focal Health Kept The Dolar Under Pressure.

The rupee rose past the 85 per us dollar mark for the first time in two weeks on Monday, extending its 0.9% surge seen on Friday. The currency was last quoted up 0.4% at 84.82.

The dollar index was hovering at an over one-month low of 98.8, down 0.3% on day, after us president donald trump From June 1.

Meanwhile, The Chinese Yuan’s Rise to a 7-Month High, Following Provided Another Tailwind to Regional Currency. Asian currencies have risen by as much as 7% on the month so far but the rupee has reminded a laggard with a 0.3% decline.

“Markets have also also appeamingly performed that president trump is looking for a weight

“Any signs of fx discussion with the US could still be an upside risk to asian currencies in the near term,” The Note Added.

Meanwhile, Dollar-Rupee Forward Premiums Fell on Monday as the Rupee Extended Its Recent Rally and Near-Tenor Us Bond Yields NUDGED NUDGED Higher.

The 1-Year Dollar-Rupee Implied Yield Dipped Below The 2% Handle for the first time in two months and was last quoted at 1.99%.

Uncertainty about Future Path of Federal Reserve Policy Rates AlongSide Firm Expectations of Rate Cuts by the Reserve Bank of India May Continue to Weigh on Dollalar-Rupee Forward Premiums in the NEAR-Employment-Employment trader at a bank said.

(Reporting by jaspreet kalra; editing by nivedita bhattacharjee)

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