Archive · 18 Sep 2025
Rupee Weakens, Bond Yields Rise After US Fed Rate Cut
The Indian rupee lost value compared to the US dollar.
This happened after the US Federal Reserve reduced interest rates.
Bond yields in India also increased.
This happened because of the interest rate cut and advance tax payments by the public, which decreased the amount of money available in the banking system.
The RBI is conducting auctions to add money back into the system.
The rupee fell by about 31 paise on Thursday.
The US Fed cut rates by 25 basis points.
Indian bond yields increased.
System liquidity has shrunk due to tax payouts.
RBI will conduct a VRR auction to inject money.
- Who
- Rupee, US Dollar, Banks
- What
- Rupee weakened against the dollar, bond yields rose.
- When
- Thursday
- Where
- India
- Why
- Dollar strengthened after the US Fed rate cut, advance tax payouts.
Market Participants
RBI
Liquidity
Market Participants
Market participants expect further pressure on rupee due to advance tax payments.
RBI
The RBI is injecting a VRR auction to ease liquidity.
- Rupee Closing Rate
- 88.1275 per USD
- Previous Rupee Closing
- 87.8150 per USD
- 10-Year Bond Yield
- 6.51%
- RBI VRR Auction
- 1 lakh crore
- System Liquidity
- ₹63,745 crore
- Fed Rate Cut
- 25 basis points
