Rupee gains, bond yields stable after US Fed keeps policy rates unchanged

The rupee closed at 76.09 a dollar, up from its previous close of 76.23 a dollar

The Indian rupee gained on Thursday after the US Federal Reserve (US Fed) kept its policy rates unchanged while tightening the pace of normalisation.  

Bond yields also remained steady as the US Fed policy fuelled risk appetite in the emerging market’s (EM’s) assets. 

The US Fed said it would buy $30 billion less in bonds from the market every month, while 12 members of the 18 guided expected three rate hikes in 2022. However, it kept its target range for federal funds rate at 0-0.25 per cent, leading to a rally in EM currencies. 

The dollar index, which measures the greenback’s strength against