Re hits record low on hawkish Fed stance
时间:2024-06-26 08:55:52 阅读(143)
The rupee on Thursday slipped to record lows against the dollar, after the US Federal Reserve raised benchmark rates by 75 basis points and sounded more hawkish than anticipated. The rupee plunged nearly 90 paise, closing the session at 80.87 compared with 79.98 on Wednesday, the single-biggest drop for the Indian currency since February 24. Apart from the prospect of more rate hikes, the escalating geopolitical risks also weighed on the sentiment.
Meanwhile, bonds sold off, sending the yield on the benchmark bond to 7.312%, up 8 basis points from its previous close of 7.234%. These levels were last seen on August 8.
Also Read: Olectra Greentech sees major FPI participation in its Rs 800-crore fund-raising plan
Jayesh Mehta, country treasurer, Bank of America, said that while the uncertainty in global markets and the consequent volatility could keep the rupee above 80 levels, closer to March it was likely to settle down at below 80 levels. It was not immediately clear whether RBI had intervened in the currency markets.
Most Asian currencies also depreciated against the greenback.
The dollex was trading at 110.65 on Thursday evening (IST) after having gone up to 111 levels in earlier trades. According to Reuters, the gauge had hit a fresh 20-year high of 111.80 at one point but came off when the Japanese yen appreciated after authorities intervened in the foreign exchange market for the first time since 1998. Currency experts do not rule out more strength for the gauge in the coming months.
While the 75 bps hike in the Fed funds rate was in line with expectations, the hawkish commentary came as a surprise. The Fed’s dot plot indicates rates will reach 4.4% by the end of this year, implying a cumulative increase of 125 basis points over the remaining two meetings in November and December. Economists expect rates could move up to 4.6% by end-2023.
上一篇:IPO pipeline may continue to be robust
下一篇:Will Nifty rise in trade or slip below 18300- Check 7 things to know before share market opens
猜你喜欢
- Rating- buy; Dr Reddy’s and Mayne deal is a valuable investment
- Pune-based National Institute of Virology gets CISF security
- Jaiprakash Associates transfers shares worth Rs 360 crore to ICICI Bank
- Ireda to list in FY24- Govt to sell 10%, firm to issue 15% fresh equity
- Raksha Bandhan 2023- Rakhi celebration begins across the nation – See images
- Rajasthan- Stage set for 58th DGP-IGP national conference in Jaipur Today, PM Modi to attend
- Rahul Gandhi’s spiritual journey! Take a look at PHOTOS of Congress leader’s Kedarnath visit
- IOC market share climbs to 43%, posts ‘stellar’ performance in FY23
- Israeli strike kills two Palestinian journalists in Gaza, officials say