- USD traded under pressure last week following the dovish FOMC minutes released on Wednesday.
- The market is growing increasingly confident that the Federal Reserve will slow the pace of rate hikes in the December meeting to 50 bps driving UST yields down.
- The Federal Reserve's November meeting minutes showed that most policymakers at the central bank agreed that it would soon be appropriate to slow the pace of interest rate hikes.
- INR remained flat as inflation expectations cool
- According to India’s finance ministry, India’s inflation is expected to cool in the coming months as commodity prices start to fall.
- India’s annual retail inflation has remained stubbornly above the central bank’s upper tolerance limit of 2% to 6% since the start of the year. Most recently, inflation has eased to 6.77% in October.
- The Finance Ministry also said that the global slowdown could impact India’s exports.
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