India’s rupee and bond yields hinge on U.S. Fed cues and foreign flows

The Indian rupee and Indian 10-year bond yields are set to respond sharply this week to the Federal Reserve’s policy signals and the magnitude of foreign portfolio flows into India. While the rupee has already gained around 1 % in October aided by intervention, analysts say sustained strength depends on fresh FPI purchases and global dollar moves. The benchmark bond yield remains in a tight 6.51 %-6.58 % range amid mixed demand and policy uncertainty.