NW18: World FX: Dlr soft big US rate cut seen; dlr index at new low
NewsWire18, Tuesday, Mar 18
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|
|
At 10:50AM
|
High
|
Low
|
Previous
|
|
GBP/USD
|
2.0026
|
2.0046
|
1.9967
|
1.9969
|
|
EUR/USD
|
1.5773
|
1.5794
|
1.5724
|
1.5742
|
|
NZD/USD
|
0.8040
|
0.8046
|
0.7978
|
0.8006
|
|
AUD/USD
|
0.9223
|
0.9227
|
0.9163
|
0.9202
|
|
USD/JPY
|
97.160
|
97.330
|
96.830
|
97.100
|
|
USD/INR
|
40.650
|
40.685
|
40.620
|
40.730
|
|
USD/KRW
|
1022.5
|
1025.1
|
978.02
|
987.99
|
|
USD/CAD
|
0.9926
|
0.9968
|
0.9924
|
0.9946
|
|
EUR/INR
|
64.115
|
64.200
|
63.544
|
63.597
|
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World FX: Dollar soft big US rate cut seen; dollar index at new low
MUMBAI--10:50AM--Strong expectations of a 100-basis-point rate cut by the
Federal Reserve at its meeting late today to decide on interest rates
prompted banks to sell the greenback.
The rate cut is likely to be part of the Fed's efforts to revive a
flagging U.S. economy.
Such expectations have emerged since the Federal Reserve announced a
25-basis-point emergency cut on the discount rate to 3.25% Sunday, to boost
liquidity and provide aid to banks hit by credit defaults.
Dollar weakened to 1.5773 against the euro compared with 1.5742 Monday.
Against the pound sterling, the dollar slipped to 2.0026 today, compared with
1.9969 Monday.
"A rate cut of less than 100 basis points is likely to be greeted with
lots of negative sentiment and would be negative for carry-trades and equity
markets," said a currency note by Kshitij Consultancy Services.
"The discount rate, which was cut on Sunday, is again likely to cut, in
the same magnitude to the Fed Funds rate," the currency note said."
The Federal Reserve will announce its interest rate decision around
11:45PM today.
"Uncertainty about this weeks FOMC outcome has increased as the chances
of a 100bps cut has increased substantially over the weekend," said a
currency note by ICICI Bank.
The dollar index--an index that measures dollar's movements against six
major currencies--fell to its lowest level of 70.79 on Monday and is
currently at 71.24. (Prithvi Durai) End
Notes: USD = U.S. dollar, JPY = Japanese yen, KRW = Korean won,
THB = Thailand baht, EUR = euro, GBP = British pound, INR = Indian rupee,
CNY = Chinese yuan, PHP = Philipine peso, AUD = Australian dollar,
NZD = New Zealand dollar, CAD = Canadian dollar, SGD = Singapore dollar,
HKD = Hong Kong dollar, TWD = Taiwanese dollar, MYR = Malaysian ringgit
Edited by Jones Koshy
NewsWire18 Tel +91 (22) 6637 8700
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