Rupee Gains, Dollar Index Dips: Market Snapshot & RBI Action

Rupee Performance Overview

• INR appreciated by 0.51% in April 2025 and 0.68% year-to-date (YTD).
• As of April 28, the rupee stood at ₹85.03/USD, marking a 0.49% gain for the day.
• Currency momentum remains strong, though psychological support at ₹85 is under watch.
• Top INR appreciation days in 2025:
• April 11: ₹86.05 (▲0.75%)
• Feb 11: ₹86.83 (▲0.74%)
• Apr 28: ₹85.03 (▲0.49%)
• Mar 21: ₹85.98 (▲0.46%)
• Mar 24: ₹85.64 (▲0.40%)

Global Currency Trends

• The US Dollar Index fell by 0.1% to 99.6.
• Global currencies such as the euro, pound, Thai baht, and Malaysian ringgit also appreciated in April, contributing to dollar weakness.
• Continued global optimism and broad dollar correction have supported EM currencies.

Bond Market Developments

• Benchmark 10-year Indian bond yield rose 4 basis points to 6.40% amid:
• Foreign banks’ profit booking
• Geopolitical caution (India–Pakistan tensions)

Upcoming Key Events

• RBI to introduce a new 10-year government bond in the upcoming weekly auction.
  • Bond sale target: ₹30,000 crore.
• RBI Open Market Operations (OMO):
  • Total: ₹1.25 trillion (₹1.25 lakh crore)
  • Schedule: May 6, 9, 15, and 19
  • Objective: Liquidity management and yield stabilization

The Indian rupee is on a strong footing backed by global dollar weakness, foreign fund inflows, and RBI’s proactive market operations. However, bond yields may remain volatile in the near term due to profit-taking and geopolitical risks.

BS