The rupee closed at 76.09 a dollar, up from its previous close of 76.23 a dollar
Historically, there is a negative correlation between the bond yield and India Inc's interest cost.
10-year bond yield may touch 6.5% soon, guided by orderly evolution motif of RBI
Analysts expect up to a 10% decline in the broader markets due to these changes in global macroeconomic conditions
World stocks climbed to a one-month high on Tuesday due to rally in technology shares and prospects of solid corporate earnings
India imports 80% of its oil needs and high prices result in increased imported inflation and have a spiralling impact on the prices across other sectors.
The broader Nifty50 declined 86.10 points or 0.49 per cent to close at 17,532.05
After surging 5%, the Sensex ends the month only 2.7% up
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The dollar also scaled a four-month high versus the euro
This was the seventh consecutive occasion when the central bank maintained a status quo on policy rates
RBI is widely expected to leave its key rates unchanged on Friday and continue with its easy monetary stance
U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints
After years of experimentation, policy transmission has become highly effective and occurs almost in real time in money markets
Gold prices edged higher on Tuesday, supported by a drop in US bond yields and concerns over a relentless surge in Delta variant infections
Spot gold was up 0.1% at $1,812.83 per ounce, as of 0243 GMT, after falling 1% in the previous session
Bond dealers welcome move, say this would help correct distortion in the yield curve
"Any hasty withdrawal of monetary policy support will negate the nascent or incipient recovery that is taking place," RBI Governor Shaktikanta Das told Business Standard in an interview
The most-traded 6.64% 2035 bond was up 6 basis points at 6.79%