Rupee opens flat on likely RBI intervention, bond yield remain stable

The 10-year benchmark bond yield opened at 6.783 percent, as compared to 6.786 percent close on the previous trading session.

Indian rupee opened almost flat on December 20 after closing at record low in the previous trading session on likely intervention by the Reserve Bank of India (RBI), experts said.

Indian bond yields also opened flat.

Today, Rupee opened at 85.08 against the US dollar, as compared to 85.08 close on the previous trading session.

The 10-year benchmark bond yield opened at 6.783 percent, compared to 6.786 percent close on the previous trading session.

Rupee touched a record low on December 19 after the US Federal Reserve signalled fewer rate cuts in 2025.

So far, Indian rupee has depreciated over 2 percent against the US dollar in this calendar year. Despite this, it remained least volatile currency amongst the Asian peers.

The Federal Reserve on Wednesday lowered its key interest rate by a quarter percentage point, the third consecutive reduction in key policy rate.

The Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25 percent to 4.5 percent, back to the level where it was in December 2022, when the rate hikes were on.

It also indicated that it would lower the rates twice more in 2025, according to the closely watched 'dot plot' matrix of individual members’ future rate expectations.