Fed rate cut eases pressure on rupee; India seen stable on FX, bonds: Report

YES Bank Research says the Fed’s 25 bps rate cut is unlikely to trigger volatility for India, with pressures on the rupee easing and currency seen stable near 90. Bond yields are expected to hold firm as markets anticipate no further RBI action and steady inflows

The US Federal Reserve's latest 25-basis-point rate cut has set the stage for a complex global monetary backdrop, but its implications for India are expected to be relatively stable, according to analysis from YES Bank's Economics Research team.

"For India, we think that the sharpest pressure for the INR is over as we expect gold imports as also non-oil non-gold imports to moderate over the remaining part of the year." noted the report. Read More

The report notes that the Fed's December policy vote was deeply divided, with s