Mint Primer: For a few $$ more: Signals from the rising greenback
The US Dollar has continued to rise this year. What are the implications?
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The US Dollar has continued to rise this year. What are the implications?
Rupee Update: Non-deliverable forwards indicate the rupee will open flat-to-slightly weaker to the U.S. dollar from 82.8975 in the previous session. The domestic currency has not been successful at moving past 82.80-82.85, which traders say is a key level.
USD-INR is expected to remain sideways within our range. A Double Butterfly (Asymmetrical) trade to capitalise
Let us understand the effect of an increase in bond yields on the overall market. The 10-year US Government Bond Yield has surged to its highest level since 2007. This significant increase in bond yields is driven by rising interest rates and further fueled by geopolitical risks.
The strength of wage growth, asset price inflation, and the lingering impact of the post-Covid dole-outs have kept household demand above potential, thereby sustaining the high inflation. Additionally, the federal government fiscal expansion, rising 61% YoY to $1.52 trillion (Oct22-Aug23, projected at $1.9 trillion in FY24), is creating another round of demand impulses.