Page 4 - Fed Rate Hikes

Rupee, bond yields to move in narrow range, with focus on Fed meeting

MUMBAI (Reuters) - The Indian rupee and government bond yields are likely to take cues from the outcome of the U.S. Federal Reserve's monetary policy meeting on Dec. 14, one of a host of high-profile, potentially market-moving economic events in the week.

Fed's message on rate hold for 'some time' clashes with 2023 rate-cut bets

They're also likely to signal another 50 basis points of tightening next year, according to economists, and an expectation that once they reach that peak, they'll stay on hold through all of 2023

Markets to track inflation data, US Fed rate decision this week: Analysts

The trading activity in the domestic equity market this week will be largely driven by a host of macroeconomic data announcements and the US Fed interest rate decision, analysts said. Industrial Production data and retail inflation rate are scheduled to be announced on Monday. Besides, wholesale inflation data will be released on Wednesday. "This week is going to be crucial in terms of global cues, where the US inflation numbers and the outcome of US Fed policy decision will be the most important events for the market. "On the domestic front, our industrial production and retail inflation numbers will be announced on December 12, while wholesale inflation numbers will be announced on December 14," said Santosh Meena, Head of Research, Swastika Investmart Ltd. Apart from this, news flows from China, the movement of crude oil prices and the dollar index will be other important factors. Institutional flows also need to be watched, as FIIs have been net sellers for the past week, Meena

Rupee gains as dollar slides on US data backing slower rate hikes

The Indian rupee rose on Friday, but gains were capped due to dollar demand amid a slump in the greenback

Rupee gains as Fed's Jerome Powell hints at slower US rate hikes

So far in 2022, the Fed has hiked rates by a total of 375 bps, leading to a stronger dollar and diminishing the appeal of emerging market assets

Rupee will stabilise once US reduces speed of rate hikes: Douglas W Diamond

Douglas W Diamond, winner of this year's Nobel Memorial Prize in Economic Sciences, says it is difficult to predict exchange rates but the rupee should stabilise once the US "reduces the speed of its rate increases". In an email interview to PTI, the American economist also said that when the US raises exchange rates unexpectedly, the dollar tends to appreciate and things will normalise when interest rates are closer to each other in the US and India. Diamond, a Merton H Miller Distinguished Service Professor of Finance at the University of Chicago's Booth School of Business, shared the Nobel Prize with former US Federal Reserve Chair Ben Bernanke and US-based economist Philip H Dybvig for their research into the fallout from bank failures. According to the Nobel panel at the Royal Swedish Academy of Sciences in Stockholm, their research has shown "why avoiding bank collapses is vital". Asked about the continuous fall of the Indian rupee against the USD dollar, Diamond says, "It is

US Federal Reserve open to 50-bp hike at December policy meeting

"It is way too early to conclude that inflation is headed sustainably down," Christopher Waller, US Federal Reserve Governor

Rupee logs best single-day gain in 4 years as Fed hikes seen slowing

As dollar index breaches key technical levels, outlook on rupee improves

Dollar slides, CPI data suggests Fed could slow pace of rate hikes

The data boosted other currencies against the dollar. The Japanese yen at one point climbed to its biggest single-day rise since 2008 and the British pound notched its biggest daily

Crypto wrap: Market remains largely resilient despite Fed's 75 bps hike

At 1 PM (IST) on Friday, Bitcoin was trading at $20,591, up 2 per cent in the past seven days, and Ethereum was at $1,579, showing a jump of 5 per cent in the same period

Is geopolitics a bigger worry for markets than rate hikes?

After the Russia-Ukraine war, fresh geo-political tensions are brewing in other regions too. Will these global worries affect markets globally? Are they a bigger worry than central bank policy action?

Global equities fall, US Treasury yields rise after hawkish Fed rate hike

The Dow Jones Industrial Average fell 0.46% to 32,001.25, the S&P 500 lost 1.06% to 3,719.89 and the Nasdaq Composite dropped 1.73% to 10,342.94

After Fed hike, experts can't form consensus on expected MPC response

In September review, panel talked about aggressive monetary policy actions and stances across the world

Rupee falls 8 paise to 82.88 against US dollar after Fed hikes rates

The rupee depreciated 8 paise to 82.88 against the US dollar in morning trade on Thursday after the US Federal Reserve raised interest rates and maintained a hawkish stance. At the interbank foreign exchange, the domestic unit opened at 82.87 against the dollar, then lost further ground to quote at 82.88, registering a loss of 8 paise over its previous close. In initial trade, the local unit also touched 82.84 against the American currency. On Wednesday, the rupee settled at 82.80 against the American currency. According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the US Fed's commentary was not dovish at all. "Oil was higher at USD 95.50 per barrel while GBP and Euro were lower after the hawkish FED comments." The rupee could trade in the range of 82.50-83.20. "Exporters may sell dollars at 83 levels keeping a close watch on RBI while importers may continue to buy all dips they get," Bhansali said. Meanwhile, the dollar index, which gauges the greenback's

RBI's letter may cite Ukraine war as main reason for high inflation: Report

For the past few months the MPC's and the governor's conduct has pointed at the war in Ukraine as the main reason for inflation staying above 6 per cent for three consecutive quarters

Top headlines: Fed hikes rate by 75 bps, Indian iPhone users to get 5G soon

From Fed rate hikes to deadlock over carrier's revival, here are the top headline for the day

US Fed unleashes another big rate hike but hints at a pullback soon

The Federal Reserve pumped up its benchmark interest rate on Wednesday by three-quarters of a point for a fourth straight time but hinted that it could soon reduce the size of its rate hikes. The Fed's move raised its key short-term rate to a range of 3.75 per cent to 4 per cent, its highest level in 15 years. It was the central bank's sixth rate hike this year a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession. But in a statement, the Fed suggested that it could soon shift to a more deliberate pace of rate increases. It said that in coming months it would consider the cumulative impact of its large rate hikes on the economy. It noted that its rate hikes take time to fully affect growth and inflation. Those words indicated that the Fed's policymakers may think borrowing costs are getting high enough to possibly slow the economy and reduce inflation. If so, that would suggest that they don't need to ..

Asia stocks edge up in early trade as investors eye Fed rate decision

Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%. U.S. stock futures rose 0.2%

Crypto wrap: Markets rally on expectation of softer stance from US Fed

Bitcoin crossed the $ 20,000 mark, and Ethereum was above the $ 1,500 mark for the first time since it concluded "Merge" in September

European stocks up as investors see signs Fed could slow rate rises

The MSCI world equity index, which tracks shares in 47 countries, was up 0.1% on the day and MSCI's main European Index hit a five-week high, up 0.8% on the day