Page 37 - Us Fed News Today

Spot gold was up 0.6% at $1,942.19 per ounce at 2:41 p.m. EDT (1841 GMT) after rising as much as 0.9% earlier in the session. U.S. gold futures settled 0.7% higher at $1,967.10.

The move to leave its benchmark rate at about 5.4% suggests the Fed thinks it has time to wait and see its 11 rate hikes since March 2022 will continue to cool rising prices.

US Federal Reserve expected to maintain current interest rates despite persistent inflation levels exceeding target range; possibility of rate hike in coming policy meetings.

Rich valuations in mid and small-cap segments pose the biggest risk for the markets, according to Madanagopal Ramu, head of equity at Sundaram Alternate Assets. He suggests holding cash and investing in stocks with long-term growth potential during corrections.

Equity markets will remain closed on Tuesday on account of Ganesh Chaturthi.

The Federal Open Market Committee will keep rates steady in the 5.25% to 5.5% range at its Sept. 19-20 meeting, the survey showed, and remain there until a first cut next May – two months later than the economists view in July.

The Indian rupee opened flat against the US dollar ahead of the key US inflation data and ECB monetary policy meeting, which is due later on September 13.

A positive trend in domestic markets and upbeat macroeconomic data from India cushioned the downside for the local unit, forex traders said.

Indian rupee strengthened marginally against US dollar tracking gains in local equity and Asian currencies markets.

"Given that Indian bonds are largely domestic owned, one shouldnt expect any major sell-off in response to the US rise in yields nor should one expect a dramatic depreciation in the rupee. From an investors standpoint, the current levels on 10-year bond yields remain attractive and we believe that they may continue to trade in a range of 7-7.30 bps. The yields can trend higher only if we see RBI hiking rates beyond 6.5%"