3 Jul 2022

USD rises after hawkish Fed comments

USD is rising on safe-haven flows. The same fears hurting demand for riskier assets are boosting demand for the USD. INR is hovering around its record lows, data showed that Indian factory output grew at the slowest pace in nine months.

author dp
Team INRBonds
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  • USD is rising on safe-haven flows and hurting demand for riskier assets.
  • U.S. 10-year treasury yield falls to lowest level since May
  • Federal Reserve Chair Jerome Powell voiced his commitment to taming inflation, even if that meant that the US economy slowed too much and slipped into recession.
  • Personal consumption and expenditure fell for a third straight month, a sign that inflation could be easing. However, personal spending also slowed, which is unnerving investors.
  • Core personal consumption expenditure (PCE) fell to 4.7% year on year, down from 4.9% in April and 5.2% in March
  • INR is hovering around its record lows, data showed that Indian factory output grew at the slowest pace in nine months as demand continued to deteriorate as prices rose.
  • India’s manufacturing activity fell to 53.9 in June

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