The Indian rupee hit a record low against the U.S. dollar, settling at 83.14. Weakening 0.24% from the previous session.
After the Federal Reserve meeting’s minutes were released, it became clear that many policymakers are leaning towards additional interest rate hikes to manage inflation risks. This sentiment pushed the yield on the 10-year U.S. Treasury note to a remarkable 15-year high of 4.31%.
Meanwhile, India’s 10-year bond yield ticked a bit, settling at 7.25%. Offshore dollar sales by the Reserve Bank of India might have helped contain the weakness.
In the broader context, with the Chinese yuan nearing its record low and the U.S. economy consistently showcasing its strength, the rupee is naturally feeling some external pressures.
However, such movements are typical in dynamic global economies, and these nuances underline the interconnectedness of our financial world.
