The Rupee closed weaker on Friday in the backdrop of a fall in prices of crude oil and Federal Reserve Chairman Jerome Powell's remarks fuelled worries that the US interest rate hikes would potentially slow economic growth. The fall in the forward premiums due to narrowing interest rate differential also signals a potential for a weaker rupee in the future, if the RBI does not hike interest rates again. The Federal Reserve's commitment to reining in the 40-year-high inflation is "unconditional", Powell told lawmakers on Thursday, even as he acknowledged that higher interest rates may push up unemployment.......
The dollar index was lower against a basket of major currencies in early Asian trade today. On Thursday, the dollar index rose sharply as risk appetite soured amid rising recession prospects. The yield on the 10-year benchmark US Treasury note fell on Thursday on concerns that the US Federal Reserve will cause a recession by aggressively hiking interest rates, and a growing belief that yields may have peaked for the near term even if inflation remains high. The Fed's commitment to reining in 40-year-high inflation is "unconditional," the US central bank chief Jerome Powell told lawmakers on Thursday, even as he acknowledged that higher interest rates may push up unemployment.......