MUMBAI, Feb 22 (Reuters) – The Indian rupee barely budged towards the greenback on Wednesday, as U.S. yields jumped in a single day on bets of a number of Federal Reserve charge hikes and weighed on sentiment.

The rupee was at 82.81 per greenback by 10:31 a.m. IST, towards its earlier shut of 82.79.

Most Asian currencies declined, with the Chinese yuan at one level falling previous 6.90 per greenback stage, after U.S. information confirmed business activity sped to an eight-month excessive in February.

The information comes on the heels of strong jobs, inflation and retail gross sales print and has sparked an extra revision of Fed terminal charge expectations.

U.S. 2-year Treasury yield rose to an over three-month peak in a single day, whereas the 10-year yield hovered near 4% after leaping 12 foundation factors.

“The implied rate on Fed funds from futures has risen to a peak of 5.365% for the August contract, suggesting that a peak upper bound of 5.5% is being increasingly priced in,” ING analysts wrote in a word.

The rupee’s losses have been presumably contained by the Reserve Bank of India’s presence within the offshore market earlier than the onshore spot market opened, a dealer at a Mumbai-based financial institution mentioned.

The greenback index being rangebound additionally doubtless helped, the dealer added.

The RBI has doubtless been promoting {dollars} within the non-deliverable ahead market to forestall the rupee from weakening previous 83 to a greenback, Reuters reported final week. read more

Markets now await minutes of the central financial institution’s newest financial coverage assembly due later within the day, in addition to Fed minutes that shall be launched throughout U.S. buying and selling hours.

Reporting by Anushka Trivedi; modifying by Eileen Soreng

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