Rupee And Bond Update - November 12, 2021: Reliance Securities
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Reliance Securities Report
The Indian rupee depreciated against the dollar on Thursday weighed down by a jump in the U.S. dollar which remained supported after this week’s spike in inflation which may prompt the Federal Reserve into action.
The odds that the Fed rate would be higher in July, after the conclusion of the Fed taper, reached more than 80%, according to the CME FedWatch Tool.
An interest rate hike could foreign outflows from India and moreover increase volatility across asset classes, including currencies.
The rupee ended at 74.51 compared with 74.39 in the previous session. The unit weakened by 0.2% on Thursday.
The U.S. Treasuries also strengthened this Thursday and lifted the dollar and in turn weighing on the domestic unit.
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