• USD/INR keeps Fed-induced losses around one-week low, depressed of late.
• Fed’s dovish rate hike joins cautious optimism in Asia to underpin Indian Rupee strength.
• Yields remain pressured as bank fears propel market’s rush toward bonds, Gold price.
• Some more central bank decisions, second-tier data to entertain traders but banking sector turmoil keeps USD/INR bears hopeful.

USD/INR drops to 82.30 as it extends the Federal Reserve (Fed) inflicted losses to the lowest levels in eight days during early Thursday. In doing so, the Indian Rupee (INR) pair fades a corrective bounce marked in the day’s start while declining towards the one-week low at the latest.

It’s worth noting that the weaker US Treasury bond yields weigh on the US Dollar amid the Fed’s dovish rate hike and allow the USD/INR bears to keep the reins. Also exerting downside pressure on the pair could be the cautious optimism in Asia, mainly driven by China.

That said, the US central bank confirmed the market’s expectations of announcing a 0.25% rate hike but failed to convince the policy hawks. The reason could be linked to the statements saying, “Some additional policy firming may be appropriate,” instead of previous remarks like “Ongoing increases in the target range will be appropriate.” It should be noted that the US Dollar bears ignored Fed Chair Jerome Powell’s attempt to placate rate cut bias, as well as US Treasury Secretary Janet Yellen’s comments suggesting no “blanket insurance” for bank deposits. Recently, Bloomberg also came out with the saying that the Federal Deposit Insurance Corporation (FDIC) is said to delay the bid deadline for a Silicon Valley private bank.