● USD climbed to a fresh 20-year high on Thursday as concerns persisted that central bank actions to drive down high inflation would crimp global economic growth, boosting its safe haven appeal.
● Another safe haven, the Japanese yen, strengthened 1.04% against the USD at 129.22 a USD,
● U.S. initial jobless claims rose to their highest level in three months.
● On the inflation front, the producer price index showed a sharp deceleration in April to a 0.5% rise from the 1.6% surge the prior month. In the 12 months through April, the PPI increased 11.0% after accelerating 11.5% in March against the expectation of an increase of 10.7%.
● U.S. Treasury Secretary Janet Yellen told a U.S. House of Representatives Financial Services Committee hearing the Fed can bring down inflation without causing a recession because of a strong U.S. job market and household balance sheets, low debt costs, and a strong banking sector.
● Fed Chair Jerome Powell was also confirmed by the U.S. Senate for a second term.
● INR is at record lows even as RBI intervened in the market throughout the week and officials said it will do so again if volatility persists without targeting any particular level.
We would love to hear back from you. Please Click here to share your valuable feedback