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Bond yields rise, rupee falls on US Federal Reserve policy and crude prices

The 'dot-plot' forecast of FOMC's median forecast suggested three rate hikes in 2022, revised up from one earlier

BSE, stock market, Sensex
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Photo: Bloomberg

Anup Roy Mumbai
The rupee and benchmark bonds declined after the US Federal Reserve (US Fed) indicated on Thursday that rate hikes are imminent to tame high inflation, further pressured by international crude oil prices touching $90 a barrel.

The ‘dot-plot’ forecast of US Fed’s median forecast suggested three rate hikes in 2022, revised up from one earlier. The taper, or bond purchases, will continue even as the pace will decrease.

Global markets fell after this, including in India. The rupee closed at 75.07 to a dollar, amid intervention by the Reserve Bank of India (RBI). The currency had fallen to 75.25 a dollar, from

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First Published: Jan 27 2022 | 11:53 AM IST

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