Rupee Slides to Historic Low
The Indian rupee breached the 95 mark against the US dollar for the first time, hitting an all-time intraday low near 95.22 before settling slightly stronger. The currency initially opened higher after regulatory steps by the Reserve Bank of India (RBI), but the gains quickly faded as market pressure intensified.
RBI Measures Fail to Hold Gains
The RBI had tightened forex position limits for banks to curb speculation, triggering a temporary rally. However, strong dollar demand, corporate arbitrage and global uncertainties erased the momentum within hours. Analysts believe the central bank may need further intervention if volatility continues.
Bond Yields Rise Amid Global Pressures
The turmoil extended to debt markets, with the 10-year government bond yield crossing 7% for the first time since mid-2024. Rising crude oil prices, foreign fund outflows and geopolitical tensions have increased inflation concerns and weakened investor sentiment.
