Rupee And Bond Update - January 07, 2021: Reliance Securities
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Reliance Securities Report
The Indian rupee depreciated against the U.S. dollar this Thursday tracking losses in regional currencies and equities after the minutes of the U.S. Federal Reserve’s latest policy meeting indicated an early interest rate lift-off to counter inflation risks.
The rupee ended at 74.49 compared with 74.36 close in the previous session.
Asian equities and currencies dropped this Thursday following the release of the minutes.
Now the futures on the federal funds rate were pricing in a nearly-80% chance of a quarter percentage point hike by the central bank at its March meeting.
Meanwhile, a recovery of the crude oil prices from lows of morning’s trade also weighed on sentiments. Brent oil was trading above $82.00 level early Asian trade on Friday.
The U.S. Dollar edged higher on Thursday, however, the benchmark 10-year yields jumped to 1.753%, up from a low of 1.491% at year-end and 1.353% on December 20 lifted by hawkish Federal Reserve and surging inflation.
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