USD/INR steady as US yields support dollar, RBI offers cap upside

USD/INR is set to open steady around 90.66–90.70, supported by slightly firmer US yields while facing persistent offers from the RBI around 90.70–90.80 that cap upside potential. The mild hawkish tone in US yields contributes to a stronger dollar, evidenced by the dollar index nudging higher to 97.20. As a result, Asian currencies generally remain soft. Traders are observing the RBI actively limiting upward movement in USD/INR, suggesting that price action will remain range-bound. The current state indicates that unless there is a significant change in US yields or RBI's intervention, the markets will continue to experience controlled fluctuations without strong directional trends. The overarching sentiment reflects a delicate balance between US yield support and RBI's active management.