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Rupee And Bond Update - December 16, 2021: Reliance Securities

Rupee And Bond Update - December 16, 2021: Reliance Securities

<div class="paragraphs"><p>An Indian 50 rupee, left, and 2000 rupee banknotes. (Photographer: Brent Lewin/Bloomberg)</p></div>
An Indian 50 rupee, left, and 2000 rupee banknotes. (Photographer: Brent Lewin/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Reliance Securities Report

The Indian rupee depreciated against the U.S. dollar on Wednesday amid increasing bets that the U.S. Federal Reserve could accelerate the pace of policy normalisation and signal more rate hikes for next year.

Investors now see a more than 54.5% chance of a rate hike in the U.S. by March 2022, according to the CME Group's Fed Watch programme.

Additionally, absence of Reserve Bank of India’s, dollar outflows also weighed on the local unit.

The rupee ended at 76.23 compared with 75.87 close in previous session.

Regional equities ended broadly lower, while currencies were mixed. India's benchmark BSE Sensex slipped 0.6% on Wednesday and weighed on sentiments.

The U.S. dollar turned lower as investors digested the U.S. Fed tapering announcement.

Click on the attachment to read the full report:

Reliance Securities Currency - December 16 2021.pdf

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