Archive · 18 Sep 2025
Rupee Climbs on Fed Rate Cut and Trade Optimism
The Indian rupee strengthened against the US dollar after the US Federal Reserve cut interest rates.
The Fed's 25 basis point cut and hints of more cuts boosted market confidence.
This led to a rise in the Nifty 50 and Sensex.
Experts suggest that RBI might cut rates in October.
The rupee's appreciation was also supported by ongoing trade negotiations with the US.
The market anticipates the rupee's positive trend, despite caution due to existing tariffs.
The rupee rose to 87.84 against the US dollar.
The US Federal Reserve cut its benchmark interest rate by 25 bps.
Experts predict more rate cuts by the Fed later in the year.
The RBI is anticipated to possibly cut rates in October.
Trade talks between the US and India are progressing.
- Who
- Investors and Forex Traders
- What
- Rupee appreciated against the US dollar
- When
- Recent Trading Sessions
- Where
- India, Forex Market
- Why
- Due to the US Fed rate cut, positive domestic equities, and trade talk optimism.
Impact on Bond Yields
Potential Impact
Bond Yields
Impact on Bond Yields
Unlikely to see sharp movements, with changes limited to 2-3 bps
Potential Impact
If US yields trend lower, spread between 10-year G-Sec and the US 10-year Treasury will widen.
- Rupee Closing Value
- 87.84/$
- Fed Rate Cut
- 25 bps
- Nifty 50 (Thursday)
- Up 0.36%
- Sensex (Thursday)
- Up 0.41%
- 10-year G-Sec Yield
- 6.47% (Wednesday)
Sources
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