Yellen hints at fed rate hike in March
The Dollar Business Bureau Keeping in view the US’ recovering economy and the investors’ positive sentiments around it, the US Federal Reserve Chair Janet Yellen on Friday said the fed will adopt a more aggressive rate path ahead, first by raising interest rates at its next meeting on March 14-15, and possibly make further adjustments after the meeting. "At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal fund rates would likely be appropriate," Yellen said. “We realise that waiting too long to scale back some of our support could potentially require us to raise rates rapidly sometime down the road, ...
Indias foreign exchange falls by $2.38 billion to $360.06 billion
The Dollar Business Bureau India’s forex reserves fell by $2.38 billion to $360.60 billion in the week to December 16, as a result of outflow of foreign investor funds and depreciation in foreign currency assets that started after the Federal Reserve decided to hike rates by 25 basis points, which prompted investors exposure to emerging markets. The outflow of foreign investor funds compelled the Reserve Bank of India (RBI) to sell dollars in order to meet the demand for the greenback. During the week, foreign investors cut exposure to Indian debt and equity to almost $500 million, while the rupee depreciated by over 35 paise, closing at 67.77 on December 16. The decline in the Indian currency was primarily led by the dollar’s phenomenal rise that ...
Manufacturing shrinks for first time in over 2 years
The monthly PMI (Purchasing Managers Index) survey showed that the rate of contraction was sharpest in almost seven years since the global financial crisis Source: PTI The Nikkei India Manufacturing PMI, a composite monthly indicator of manufacturing performance, dipped from 50.3 in November to 49.1 in December. In the first contraction in over two years, manufacturing sector output dipped in December to a 28-month low as new orders fell sharply and production took a big hit from heavy rains in Chennai, putting pressure on RBI to keep rates low. Painting an even gloomier picture, the monthly PMI (Purchasing Managers Index) survey showed that the rate of contraction was sharpest in almost seven years since the global financial crisis. The Nikkei India Manufacturing PMI, a ...
