On Thursday, the Indian rupee reached an intraday low of 95.96 per dollar amid strong dollar demand from importers and the maturity of offshore non-deliverable forward positions. However, it rebounded to around 95.58 after reports indicated that the Indian government was considering a reduction in taxes for foreign investors in Indian bonds, aimed at attracting foreign capital. Ultimately, the rupee closed at 95.77 per dollar, slightly lower than the previous close of 95.71. The recovery was short-lived as data revealed that India's wholesale price inflation surged to 8.30% in April, significantly higher than the anticipated 4.4%, raising concerns about imported inflation due to global developments, particularly in oil prices. The Reserve Bank of India reportedly intervened to stabilize the rupee by selling dollars at the peak level. The bond market reacted with the benchmark 10-year government bond yield dropping by 3 basis points to 7.02%, reflecting optimism about potential foreign inflows if tax norms are eased. Market volatility has increased, providing opportunities for importers and exporters to hedge their positions.