Currency Markets Snapshots For The Week
- Indian Rupee fell to fresh record low levelS of Rs 74.22 to the USD on Friday, breaching the Rs 74-mark for the first time on record.
- Reserve Bank of India (RBI) kept key policy rates unchanged, against market expectations of a rate hike.
- 10 year UST yields shot up on strong US data and primarily on inflation fears, as Amazon hiked minimum wages.
- INR depreciated last week by 1.73% against the USD and by 1.12% against the euro.
- USD Index (DXY) rose by 0.52% on a week on week basis and is at a level of 95.62.
- Italy government is aiming to cut its budget deficit to 2% of GDP in 2021 from 2.4% decided earlier.
Weekly Global Bond Analysis
- 10-year UST yields rose to multiyear highs of 3.23%
- US Job data, unemployment data and ISM Index all are showing signs of improvement
- Germany Industrial output surged in August
- Italy populist government said would not make further revisions to the budget deficit
- Bank Indonesia Governor said they must raise interest rates ahead of the U.S. Federal Reserve