Currency Markets Snapshots For The Week
- Indian Rupee ended the week at Rs 72.49 levels against the USD.
- INR depreciated last week by 0.39% against the USD and appreciated by 1.22% against the euro.
- USD Index (DXY) rose by 0.97% on a week on week basis and is at a level of 95.13.
- British Pound gave up gains against the USD as market participants remained pessimistic about prospects for Brexit negotiations
- The euro was hit hard on Friday after the newly elected populist Italian government decided on a 2.4% deficit target for 2019.
Weekly Global Bond Analysis
- Fed Chair Jerome Powell does not anticipate prices surprising on the upside
- Federal Reserve raised the federal funds rate by 25bps to 2%-2.25%
- Fed is expected to raise rates again in December and another three times next year and once in 2020
- European Central Bank President Mario Draghi said he expects a rise in eurozone consumer prices
- Italian government agreed to a 2019 budget deficit target of 2.4% of GDP
- Bank Indonesia raised its benchmark policy rate by 25 basis points to 5.75%.