The Indian rupee (INR) continued to remain one of the least volatile major currencies and appreciated modestly by 0.02 per cent (m-o-m) vis-vis the US dollar in May 2024, according to RBI June Bulletin. The INR appreciated by 1.2 per cent (m-o-m) in May 2024 in terms of the 40-currency real effective exchange rate (REER), supported by positive relative price differentials and the appreciation of the INR in nominal effective terms. The yield on the 10-year Indian benchmark (7.10 GS 2034) G-sec softened to 7.01 per cent on June 12 from 7.03 per cent on May 15 due to a decline in crude oil prices, larger-than-expected dividend transfer by the Reserve Bank for 2023-2413 giving additional fiscal space to the government, positive sentiment on the inclusion of Indian G-sec in global bond indices in June and a stable rupee. The benchmark 10-year bond yield eased further on Indias sovereign rating outlook upgrade by S&P Global Ratings for to positive from stable , the central bank noted. Yields softened across the term structure, barring around the 10-year maturity.
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