The Indian rupee hovered around 94.6 per dollar, retreating from recent gains as the US dollar strengthened after the Federal Reserve concluded its latest policy meeting. Investors reassessed the interest-rate outlook after the Fed unanimously left its benchmark rate unchanged at 3.5%–3.75%, while updated projections signaled a notable shift in policymakers’ expectations. Further pressure on the rupee came as US Treasury yields climbed, with the two-year yield rising 12 basis points, supported by a series of resilient economic indicators that reinforced the case for higher-for-longer interest rates. Meanwhile, crude oil prices continued to move lower after the United States and Iran reached an interim agreement to halt the conflict and restore traffic through the Strait of Hormuz, easing concerns over energy supply disruptions.
