The Indian rupee opened flat at 82.83 against the US dollar on Tuesday as compared to its previous close of 82.83.
The dollar index edged higher against most Asian currencies as offshore Chinese yuan slipped to 7.0630 against the dollar.
US 2-year yields edged closer to their highest since mid-March as market participants focused on progress in US debt limit talks and comments from Federal Reserve officials.
Fed officials once again struck down a tough tone. Minneapolis Fed President Neel Kashkari, a voter on the Federal Open Market Committee this year, said it was a “close call” on whether he would vote to hold or raise interest rates at next month’s meeting, Reuters reported. .
St. Louis Fed President James Bullard said the US central bank may still need to raise the benchmark interest rate by half a point this year.
Read also: Global markets: Asian shares rise, US stock futures gain on ‘productive’ debt talks
Meanwhile, crude oil prices edged higher as investors expected a tighter market due to a seasonal increase in gasoline demand and supply cuts from OPEC producers. However, concerns over the risk of US debt default limited the gains.
Brent crude futures rose 0.3% to $76.19 a barrel, while US West Texas Intermediate (WTI) crude was at $72.26 a barrel, or 0.3%.
On the domestic front, Indian benchmark indices were set to open marginally higher following gains in Asian peers.
Foreign Institutional Investors (FII) bought Indian shares on Monday 922.89 crore, while domestic institutional investors (DIIs) bought Indian shares 604.57 crore as per provisional figures on the exchanges.
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