Our goal with The Daily Brief is to simplify the biggest stories in the Indian markets and help you understand what they mean.
https://stocklens.substack.com/p/the-solara-active-pharma-turnaround
A falling rupee is adding pressure on bond yields?
A falling rupee hurts bond yields in many ways
- It makes it less attractive for foreign investors to stay put without demanding higher returns
- It widens the govt’s deficit by making imports (like oil) costlier, which means more bond supply and higher yields
- It stokes inflation through expensive imports, forcing investors to ask for a bigger cushion and the RBI to stay hawkish
All of this piles pressure on yields.
https://stocklens.substack.com/p/the-solara-active-pharma-turnaround
A falling rupee is adding pressure on bond yields?
A falling rupee hurts bond yields in many ways
- It makes it less attractive for foreign investors to stay put without demanding higher returns
- It widens the govt’s deficit by making imports (like oil) costlier, which means more bond supply and higher yields
- It stokes inflation through expensive imports, forcing investors to ask for a bigger cushion and the RBI to stay hawkish
All of this piles pressure on yields.