The Indian Rupee strengthens near 95.60 despite 10-year US Treasury yields hitting an 18-month high of 4.71%.
The Indian Rupee (INR) advanced against the US Dollar (USD) in early trading on Thursday, with the USD/INR pair dipping to around 95.60. The move comes despite a sharp rise in US Treasury yields, which typically weigh on risk-sensitive currencies like the INR.
10-year US Treasury yields surged 1.8% to approximately 4.71%, reaching their highest level in 18 months. The US Dollar Index (DXY) also edged up 0.12% to near 100.93, recovering from a prior session decline following the Federal Reserve’s decision to hold interest rates steady at 3.50%-3.75%.
The Fed’s unchanged policy stance, amid rising oil prices and inflation concerns, has fueled expectations of prolonged higher yields. However, the INR’s resilience suggests underlying demand for the currency despite broader market pressures.