The rupee appreciated 17 paise to 95.56 against the American currency in early trade on Thursday tracking a weak US dollar, after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds.
Forex traders said the dollar index fell to its lowest level since late May after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing US long-term yields lower and reducing the dollar’s yield advantage.
Moreover, the dollar is also being weighed down by reduced expectations of further Federal Reserve tightening though the FED policymakers’ inflation concerns increased at the July meeting, according to the FED minutes.
At the interbank foreign exchange, the rupee opened at 95.57, then rose to 95.56, higher by 17 paise from its previous close.
On Wednesday, the rupee stayed almost flat, ending just 1 paisa higher at 95.73 against the US dollar.
Meanwhile, the dollar index, which gauges the …
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