The Indian rupee rose on Tuesday due to central bank intervention and a stronger offshore Chinese yuan, according to Reuters. The rupee traded at 83.3375 against the US dollar, up 0.1 per cent from the previous close. The Reserve Bank of India likely sold US dollars to support the rupee, which may face resistance at 83.20. The dollar index was lower at 104.2, and most Asian currencies gained slightly. The offshore Chinese yuan strengthened to 7.24, supported by Chinese state-run banks. ING Bank expects a gradual yuan depreciation. Dollar-rupee forward premiums decreased, with the 1-year implied yield at 1.54 per cent, the lowest in nearly 4 months. The 1-year US Treasury yield rose to 5.01 per cent in Asian trading. Investors await US personal consumption expenditure (PCE) inflation data later this week.
