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18.06.202603:58:47UTC+00Indian Rupee Retreats on Firmer Dollar

The Indian rupee hovered near 94.6 per dollar, pulling back from recent gains as the US dollar strengthened following the Federal Reserve’s latest policy decision. 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 clear shift in policymakers’ expectations. Additional pressure on the rupee came from a rise in US Treasury yields, with the two-year yield climbing 12 basis points, supported by a run of resilient economic data that bolstered the case for interest rates staying higher for longer. At the same time, crude oil prices continued to decline after the United States and Iran reached an interim agreement to halt the conflict and restore traffic through the Strait of Hormuz, easing worries over potential disruptions to energy supplies.

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