The Indian rupee had a significant increase in value against the US dollar, closing at 84.2875, which is the highest level since November 7. This surge was driven by dollar inflows related to the rebalancing of MSCI's global equity indexes, as well as a weaker dollar and declining US bond yields.
The dollar index fell by 0.5% to 106.8, reflecting market reactions to the nomination of Scott Bessent for Treasury Secretary. Bessent is a well-regarded finance professional, and his nomination is expected to result in stable government financial management. Additionally, US Treasury yields dropped, with the 10-year yield decreasing by 7 basis points to 4.34%.