Rupee Slumps as US Yields and Dollar Firm Up

The Indian Rupee (INR) is under pressure due to rising US yields and inflation concerns. The USD/INR pair traded near 95.60 on Thursday, as the Rupee struggles against a firmer U.S. Dollar and elevated Treasury yields.

The 10-year U.S. Treasury yields are up 1.8% around 4.71%, their highest level in 18 months, weighing on risk-sensitive currencies like the Rupee.

The Federal Reserve's decision to keep rates at 3.50%-3.75% for a fifth consecutive meeting has reinforced expectations that it may still need to raise interest rates to secure price stability.