On Thursday , The domestics unit likely to commences session with positive note between 72.35 - 72.45 levels as greenback was give-up three day gain on overnight session on Federal Reserve saying it was in no rush to raise interest rates through all of 2023 even after predicting a V-shaped recovery in the U.S. economy.
Last session , USDINR was stuck in tight range between 72.51 - 72.62 levels.
Prime Minister Narendra Modi said quick action was needed to contain the surge, as the country’s infections tally hit 11.44 million, the third behind the United States and Brazil.
INTRADAY RANGE - 72.08 ( 72.25 - 72.52 ) 72.65
THE FED
On Wednesday , Jerome Powell stuck to his dovish tone as he handed down the Fed's latest policy decision, putting paid to speculation that the central bank would pull back its stimulus as hopes rise for a strong economic recovery.
The Fed also predicted that the economy would grow 6.5% in 2021, the largest annual jump in GDP since 1984 and a 2.3% points difference from its projection three months ago.
Inflation is predicted at 2.4%, above the Fed’s 2% target. However, seven of 18 Fed officials now expect higher rates in 2023, compared to five in December 2020.
U.S. 10 year Treasuries yield on a roller-coaster ride, with yields at around 1.66% during the Asian session.
CENTRAL BANKS
The Bank of England is widely expected to leave its benchmark bank rate at a historic low of 0.1% and its bond-buying program unchanged when it hands down its policy decision later in the day. The Bank of Japan will hand down its own policy decision on Friday.
THE GOLD
Gold futures touched their highest intraday level in more than two weeks late Wednesday afternoon, as prices reacted to the U.S. Federal Reserve’s decision to keep its benchmark interest rate unchanged near zero, likely for the next two years.
Inflation is likely a key worry for investors, analysts said, though the Fed said Wednesday that it will tolerate inflation slightly above target to make up for the years inflation has been below 2%. Gold is often used as a hedge against inflation.
Comentarios