The Indian Rupee slipped in the early trade on Thursday. It has opened lower by 24 paise at 64.50 per Dollar versus 64.26 Wednesday. Get free equity tips on mobile call on 9644405056.
The FOMC kept Fed funds rate unchanged but announced balance sheet normalization from October. The probability of a December rate hike has now increased significantly.
The Dollar index spiked sharply and US 10-year treasury yield firmed up. Expect USD-INR pair to trade in a range of 64.20- 64.50 for the day.
Higher crude prices and higher US Treasury yields are likely to generate negative sentiment in the local bond market. Fiscal slippage worries could re-surface with a possible fiscal stimulus.
The 10-year benchmark bond yield is expected to trade in a range of 6.58-6.61 percent for the day.
The Dollar rose to a two-month high against the Yen and extended its gains against the euro after a hawkish Federal Reserve heightened expectations for an interest rate hike in December.