Indian Rupee Surges Against USD Amid Rising US Treasury Yields
The Indian Rupee (INR) has ticked higher against the US Dollar (USD) in early trading on Thursday, despite a surge in US Treasury Yields. The USD/INR pair is currently at around 95.60, with the INR giving a tough fight to the rising yields.
The 10-year US Treasury Yields have reached 4.71%, the highest level seen in 18 months, due to upside inflation risks and expectations of a possible interest rate hike by the Federal Reserve (Fed) later this year.
Fed Chairman Kevin Warsh emphasized the importance of bringing down inflation during the monetary policy announcement on Wednesday, stating that the central bank would not hesitate to act if needed.
The market is responding to these comments, with MUFG Bank saying that 'talk is cheap' and that the Fed needs to eventually walk the talk on inflation under this new regime.