The value of the US dollar in comparison to the rupee has shown a decline as the US Federal Reserve opted to keep interest rates unchanged. The rupee’s opening rate today was 83.09 against the dollar, while US bond yields experienced an upswing.
US Bond Yield Surge
Following the Fed’s decision, US bond yields witnessed a significant rise. The 2-year American bond yield reached 5.19%, while the 10-year bond yield hit its highest point in 16 years at 4.61%. The 5-year bond yield also rose to 4.61%, and the 30-year bond yield reached 4.47%.
Fed’s Interest Rate Stance
The Federal Reserve chose to maintain the current interest rates, with rates restricted to 5.25%-5.5% in the US. Fed Chairman Jerome Powell emphasized the priority of curbing inflation, hinting at potential rate adjustments later in the year. Strong consumer spending and economic indicators are the focus, with a target inflation rate of up to 2% by 2026.
Asian Currency Market Trends
Among other Asian currencies, South Korea saw a 0.76% decline in the dollar, while the Taiwanese dollar, Philippine peso, and Thai baht experienced declines of 0.39%, 0.24%, and 0.2% respectively. The Chinese yuan and Singapore dollar also showed a decrease in value against the dollar.