US 10-year yield unlikely to break far above 5%, rupee remains uncompetitive: UBS' Bhanu Baweja
CNBC-TV18 1 hr ago·10 Sept 2026, 7:34 am
UBS Chief Strategist Bhanu Baweja suggests that the recent inflow of foreign currency (FCNR) funds into India is only a temporary fix for the rupee. He believes these funds have provided a short-term cushion, but they do not signal the end of the currency's depreciation cycle. Baweja argues that the rupee remains fundamentally uncompetitive compared to other Asian currencies, which continues to weigh on the outlook for the Indian market.
For investors, this perspective implies that the pressure on the rupee could persist. A weaker currency can erode the returns of foreign investors holding Indian assets, potentially making the market less attractive. It also signals that the broader economic environment remains sensitive to global interest rate shifts and capital flow trends.
Moving forward, investors should monitor the pace of foreign capital inflows and the movement of the US 10-year yield. If global interest rates remain high, the rupee may continue to face headwinds. Keeping a close watch on these external factors will be crucial for assessing the stability of the Indian market in the coming quarters.
Excerpt from CNBC-TV18
Bhanu Baweja, Chief Strategist at UBS Investment Bank, sees recent FCNR flows as providing the rupee with a temporary reprieve, rather than marking the end of its depreciation cycle. He argues that the currency remains uncompetitive, which could continue to be a headwind for overseas investors and their returns on…Read the original at CNBC-TV18
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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