Federal Reserve Chair Janet Yellen speaks during a news conference in Washington, March 15, 2017
.Federal Reserve raises interest rates by 0.25%
The Federal Reserve approved its second rate hike of 2017 even amid expectations that inflation is running well below the central bank's target. In addition, the Fed provided more detail on how it will unwind its $4.5 trillion balance sheet, or portfolio of bonds that includes Treasurys, mortgage-backed securities and government agency debt. As financial markets had anticipated, the policymaking Federal Open Market Committee increased its benchmark target a quarter point. The new range will be 1 percent to 1.25 percent for a rate that currently is 0.91 percent.
The Indian rupee opened marginally higher at 64.27 per dollar on Thursday versus previous close 64.30.Lower than expected India CPI and WPI have triggered market expectations of monetary easing making local bond market bullish. 6.79 GOI 2027 expected to trade in a range of 6.43-6.48 percent today.The dollar nursed losses as weak US inflation data left investors wondering if the Federal Reserve would follow up its latest rate hike with another later this year. Deepening political turmoil in Washington also weighed on the greenback.
USDINR
Support at 64.25 and resistance at 64.60
Trading in range either side breakout with volumes will decide further.
GBPINR
Hurdle at 82.40, Break and sustain above 82.40 will take it 82.60—82.80++ mark else could touch its support level of 81.90
Fresh selling can be initiated below 81.70
EURINR
Support at 72.15 and resistance 72.60
Looks weak, close below 72.15 will take it to 72.00---71.80 mark else could touch its resistance levels of 72.60
Fresh buying can be initiated above 72.60
JPYINR
Support at 58.50 and Resistance at 58.85
Break and sustain above 58.85 will take it to 59.00—59.20++ mark else could touch its support level of 58.50
Fresh selling can be initiated below 58.50
More will update soon!!
