Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead
Geopolitical tensions were ever present with North Korea firing more missiles and talk of Russia ramping up attacks in Ukraine before Friday's one-year anniversary of the invasion
The greenback advanced broadly in early Asia trade, sending sterling 0.12% lower to $1.2028 and the Aussie falling 0.18% to $0.6866
The Nifty50, on the other hand, ended the session at 17,944, down 91 points or 0.5 per cent
RBI likely sold dollars to shield rupee amid Fed hike concerns
Both banks forecast Fed fund rates at 5.25%-5.5% range
The non-deliverable forwards indicated the rupee would open around 82.60-82.62 per dollar, compared with the 82.4925 closing in the previous session
Bank Nifty underperforms after RBI raises hikes rate by 25bps
The non-deliverable forwards indicate an opening of 82.68-82.74 for the rupee, compared with 82.70 in the previous session
owell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong but reiterated that he felt a process of disinflation was underway
Markets were still reeling from the shock of Friday's jobs report, which showed that non-farm payrolls surged by an eye-watering 517,000 in January, well above expectations
Globally, investors fear that the US Fed will have to continue raising interest rates for longer than expected to cool labour markets and bring down inflation
Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024
"A monetary policy meeting this week and some important October-December 2022-23 results may influence the near-term direction of markets"
Adani Ent shares end 2.2% lower after recovering 50% from day's low
The European Central Bank has chugged ahead with another outsized interest rate increase, underlining its drive to subdue high inflation even as the European economy slows and the US Federal Reserve eases its pace of hikes. The bank raised its key benchmarks by half a percentage point Thursday and vowed a similar move in March. The Frankfurt-based policymakers are moving aggressively to get on top of price spikes that have slowed but are still hurting households in the 20 countries that use the euro currency. The bank said it will stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to its 2 per cent medium-term target." The Bank of England also went big with a half-point hike Thursday, but the Fed pulled back a day earlier, slowing to a quarter-point hike. While ECB President Christine Lagarde essentially announced the move at the bank's December meeting, her
The Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday
Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation
The Fed is widely expected to raise the target rate to 4.5% to 4.75% at Wednesday's Federal Open Market Committee meeting
Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion