The rupee reached a new low against the dollar while the sensex hit new all-time highs. This anomaly occurred as the rupee breached 83.39 for the first time on the day the sensex closed at a new high. The surge in domestic investors and the decoupling of the rupee-dollar from other currency pairs have contributed to this phenomenon. Indian corporates robust earnings and inclusion in emerging market bond indices by JP Morgan have also played a role. RBI has used its reserves to support the currency and protect the economy from a higher import bill.
Foreign investors bought bonds under the Fully Accessible Route or FAR worth over 23 billion rupees ($276.25 million) on an average in each of the three weeks since Sept. 22 when JPMorgan said it would include 23 such securities in its widely tracked index from June 2024 onwards.
In the fully accessible route (FAR) for government securities, the aggregate holding of foreign investors in their most favoured long-term bond has fallen by ₹1,192.6 crore over the past couple of months even as investment in other securities has remained broadly steady.
Indian government bond yields
are starting the week marginally higher as their U.S.
counterparts continue to remain elevated above crucial levels. The benchmark 7.26% 2033 bond yield was. -Today at 12:32 am- MarketScreener