The Indian unit closed at 94.64/65 per US dollar against the previous close of 94.74/75.
The Government Securities (G-Secs) market rallied on Wednesday, tracking falling US Treasury yields and dip in crude oil prices amid the Democrats winning control of the US Congress in the mid-term elections. The rupee too gained ground as the US dollar weakened.
Yield of the widely tracked benchmark 10-year G-Sec (6.94 per cent GS2036) dipped 12 basis points, the biggest single day decline in about six months, to close at 7.19 per cent against the previous close of 7.31 per cent. The price of this security jumped by about 83 paise.
Yield and prices of a bond are inversely co-related and move in opposite directions.
Referring to the outcome of the US mid-term elections, Nuvama, in report, said: “For Indian government bonds, lower US yields and a weaker dollar could provide external support and improve FPI sentiment in the near term, although domestic factors and crude oil prices will remain key drivers. For now, 10-year IGB (India Government Bond) has eased.
“But the gains on the US treasury yields may be short lived, and India yields might trade with caution over the near term, given the rally over the past few days from 7.50 per cent to 7.19 per cent.”
At the weekly Treasury Bill (T-Bill) auction, the 91-day and 364-day T-Bill auctions to mobilise ₹8,000 crore and ₹7,000 crore, sailed through. However, the RBI rejected all bids for the 182-day T-Bill (₹8,000 crore) auction as market participants demanded higher yields.
Meanwhile, the rupee appreciated to a two-week high as the dollar weakened after the US mid-term elections showed the Democrats gaining an upper hand in the US Congress and a decline in crude oil prices. The Indian unit closed at 94.64/65 per US dollar against the previous close of 94.74/75.
Dilip Parmar, Senior Research Analyst, HDFC Securities, said: “The Indian rupee extended its winning streak for the fourth consecutive session, buoyed by a pullback in the dollar index and the crude oil prices following the US mid-term election results. Declining bond yields and positive risk-on sentiment provided additional support. In the near term, spot USDINR support pegged at 94.30 and resistance at 94.90.
Published on November 4, 2026
