Fed Rate Cut: India's Rupee Pressure Eases, Bonds Stable, Per YES Bank

• The US Federal Reserve's rate cut is expected to bring relative stability to India's currency and bond markets.
• Pressure on the Indian Rupee is anticipated to ease due to moderating gold and non-oil imports.
• Foreign portfolio investor inflows are likely to increase as the USD/INR stabilizes around 90.00.
• The USD/INR is projected to trade in the 89.75-90.50 range, potentially ending near 90.00 by March 2026.
• Indian bond yields are expected to remain stable, with 10-year G-sec yields unlikely to fall sustainably below 6.50%.

Why It Matters: Fed rate cut signals stability for India's rupee and bond market.