United States dollar surges to 15-month high against Singdollar

United States dollar surges to 15-month high against Singdollar

United States dollar surges to 15-month high against Singdollar

Indian rupee firmed up marginally near 73.50 on Friday ahead of RBI's policy announcement. "It's not breaking - it's Broken", Gandhi said on Twitter. Consistent dollar demand from importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure. "Till when will the 56-inch chest be on "silent mode", he tweeted and asked what happened to the promise of "achche din".

The policy repo rate under the liquidity adjustment facility (LAF) remained unchanged at 6.5 per cent.

Brent crude also breached the four-year high of USD 86 dollar per barrel level, fuelling worries over widening current account and trade deficit. Indonesia has a large current account deficit stemming from its oil imports.

The RBI's monetary policy committee (MPC) left the repo rate at 6.50 percent, though 35 out of 64 analysts surveyed by Reuters last week had forecast a rate hike.

He said: "You can not wish away the depreciation in the rupee if you are a current account deficit country". The question was only of timing, said Radhika Rao, an economist at DBS in Singapore.

Mr Prasanna went on to reason that India would not want to "fall behind the curve in terms of interest rate differential given that central banks globally are raising interest rates".

The 10-year gilt yield stood at 8.061%, down from its previous close of 8.157%.

"The biggest policy anchor for rupee is high real rates".

US Treasury yields jumped to multi-year peaks on Wednesday, with the 10-year yield reaching a seven-year high after Wednesday's robust data bolstered the case for the Fed to raise interest rates again in December and beyond.

Oil prices have reached four-year peaks as the market focused on upcoming U.S. sanctions on Iran while shrugging off the year's largest weekly build in USA crude stockpiles.

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