Daijiworld Media Network – Mumbai
Mumbai, Oct 1: The Indian rupee weakened 0.5 per cent to 96.31 against the US dollar on Thursday, compared with the previous close of 95.83, tracking a stronger dollar index and rising US Treasury yields.
The rupee was the worst-performing Asian currency during the day, while the benchmark 10-year government bond yield rose to 7.21 per cent, its highest level since April 2024, from 7.18 per cent previously.
The dollar index rose 0.45 per cent to 101.90, while the US 10-year Treasury yield climbed to 5.34 per cent, its highest level since 2002. Brent crude also crossed $100 a barrel, increasing concerns over imported inflation.
Analysts said the rupee was pressured by higher US yields, rising crude prices, foreign fund outflows, risk-averse sentiment and dollar short-covering.
Government bonds also came under pressure ahead of the RBI’s October policy meeting. Market participants expect the benchmark 10-year yield to touch 7.25 per cent by the Monetary Policy Committee’s decision on October 7.
The rupee has depreciated 6.68 per cent so far in 2026, while the 10-year government bond yield has risen 63 basis points. Over the past year, the currency has declined 7.91 per cent and the benchmark yield has risen 70 basis points.
