India, March 30 -- The rupee weakened past the 95/dollar mark for the first time and the ten-year bond yield rose to the highest since July 2024, despite the central bank's most aggressive defence of the currency in more than a decade.

That, in effect, brings into question the Reserve Bank of India's "lower-for-longer" interest rate narrative just as the new fiscal is about to begin. With brent crude oil prices showing no signs of cooling, Rs.100/Dollar is no longer a distant risk but a looming reality.

The rupee opened at 93.62, a gain of 128 paise, after the RBI issued a late-Friday circular slashing the net open position (NOP) banks can hold overnight to just $100 million. The move was designed to choke off speculative bets against t...