Latest news with #AlbertoMusalem
Bloomberg
23-05-2025
- Business
- Bloomberg
Fed Must Contain Long-Term Inflation Expectations, Musalem Says
Federal Reserve Bank of St. Louis President Alberto Musalem said officials are focused on keeping long-run inflation expectations stable as businesses and consumers anticipate prices to rise in the near term. 'We at the Fed don't want short-term inflation expectations to rise to such a level that they could seep into long-term inflation expectations,' Musalem said Friday during an event in Bentonville, Arkansas. That, he added, 'would make our job harder in terms of achieving maximum employment and price stability.'
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Business Standard
21-05-2025
- Business
- Business Standard
Indian Rupee ends flat at 85.64/$ as high oil prices offset weak dollar
The Indian Rupee ended flat on Wednesday as the surge in crude oil prices capped any positive movements from the weakness in the dollar index. The domestic currency closed at 85.64, the same level it ended yesterday against the greenback, according to Bloomberg data. The currency has fallen by over 1.3 per cent so far this month, snapping two months of gains. The Dollar Index showed signs of persistent weakness as it once again fell below the 100 mark, as officials flagged troubles for the economy. The index, which measures the greenback against a basket of six major currencies, was 0.44 per cent lower at 99.66. During the session, the fall dollar value boosted Asian currencies, which rose between 0.1 per cent and 0.4 per cent. Federal Reserve officials had a cautious tone on the US economic outlook. According to reports, St. Louis Fed President Alberto Musalem cautioned that the US labour market may weaken and prices could rise, a concern echoed by Atlanta Fed President Raphael Bostic. The 10-year treasury yield climbed back to the 4.50 per cent level, while short-maturity yields were broadly unchanged. Crude oil prices rose after reports emerged that Israel is preparing for a potential strike on Iranian nuclear facilities. Brent crude price was up 1.04 per cent to $66.06 per barrel, while WTI crude prices were 1.16 per cent higher at 62.75, as of 3:40 PM IST. Firm global crude oil prices intensified the downside pressure on the currency, according to Amit Pabari, managing director at CR Forex Advisors. The latest geopolitical developments may cause a tick-up in oil prices, which can cause the rupee to be in pressure, he said. Technically, the dollar-rupee pair is expected to face strong resistance near 85.60-85.80 levels while 85.20 will act as a strong support, Pabari said. Meanwhile, Investors will closely monitor any further selling by foreign portfolio investors following their sale of equities worth ₹10,016.1 crore in the cash market on Tuesday.
Business Standard
21-05-2025
- Business
- Business Standard
Indian Rupee opens flat at 85.65/$ as weak Dollar caps decline
The Indian Rupee opened flat on Wednesday, a day after it snapped two days of gains, as the weakness in the dollar index capped heavy depreciation in the currency. The domestic currency depreciated 1 paise to open at 85.65 after closing at 85.64 against the greenback on Tuesday, according to Bloomberg data. The currency has fallen by over 1.3 per cent so far this month. The local unit fell on Tuesday as oil companies bought dollars and a stocks selloff by global funds, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Foreign portfolio investors (FPIs) sold equities worth over ₹10,000 crore in the cash market, the highest in over three months. Track LIVE Stock Market Updates Here Meanwhile, the US Dollar Index showed signs of weakness as it once again fell below the 100 mark. The index, which measures the greenback against a basket of six major currencies, was trading 0.44 per cent lower at 99.67. The fall in the index boosted Asian currencies, which rose between 0.1 per cent and 0.4 per cent. The decline in the index comes after Federal Reserve officials had a cautious tone on the US economic outlook. According to reports, St. Louis Fed President Alberto Musalem cautioned that the US labour market may weaken and prices could rise, a concern echoed by Atlanta Fed President Raphael Bostic. The 10-year treasury yield climbed back to the 4.50 per cent level, while short-maturity yields were broadly unchanged. On the geopolitical front, tensions escalated after reports emerged that Israel is preparing for a potential strike on Iranian nuclear facilities. Following this news, Brent crude price was up 1.48 per cent to $66.35 per barrel, while WTI crude prices were 0.21 per cent lower at 62.56, as of 9:15 AM IST. Firm global crude oil prices intensified the downside pressure on the currency, according to Amit Pabari, managing director at CR Forex Advisors. The latest geopolitical developments may cause a tick-up in oil prices, which can cause the rupee to be in pressure, he said. Technically, the dollar-rupee pair is expected to face strong resistance near 85.60-85.80 levels while 85.20 will act as a strong support, Pabari said. ALSO READ:
Business Recorder
21-05-2025
- Business
- Business Recorder
Fed comments weigh on dollar, set stage for slight Indian rupee upside
MUMBAI: The Indian rupee is set to open marginally higher on Wednesday, buoyed by a decline in the U.S. dollar after Federal Reserve officials adopted a cautious tone on the U.S. economic outlook. The 1-month non-deliverable forward indicated an open in the 85.56–85.58 range, compared to 85.6350 in the previous session. The rupee is likely to move marginally higher, if at all, on the back of the weakness in the dollar, a currency trader at a bank said, noting that recent upticks in the currency have consistently fizzled out amid incessant dollar demand. The dollar index dropped 0.4% on Tuesday and extended losses in Asian trading, falling below the key 100 handle. The fall boosted Asian currencies, which rose between 0.1% and 0.4%. Indian rupee slips against dollar Comments from Fed officials on Tuesday reinforced concerns around the U.S. economic outlook amid uncertainty tied to President Trump's trade policies. St. Louis Fed President Alberto Musalem warned that despite recent cooling in U.S.-China trade tensions, the U.S. labor market is likely to weaken and prices could increase. Atlanta Fed President Raphael Bostic said the U.S. economy may be on the brink of a price-hike wave. Long-term U.S. Treasuries sold off, pushing the 10-year yield back to the 4.50% level, while short-maturity yields were broadly unchanged. The further steepening of the yield curve possibly reflected concerns about the U.S. fiscal outlook and higher inflation, MUFG Bank said in a note. 'There is possibly fading market confidence towards US trade and fiscal policies,' it said. Trump is urging fellow Republicans in Congress to rally behind a sweeping tax-cut proposal, which, if passed, could heighten concerns over U.S. fiscal policy.
Reuters
21-05-2025
- Business
- Reuters
Fed comments weigh on dollar, set stage for slight rupee upside
MUMBAI, May 21 (Reuters) - The Indian rupee is set to open marginally higher on Wednesday, buoyed by a decline in the U.S. dollar after Federal Reserve officials adopted a cautious tone on the U.S. economic outlook. The 1-month non-deliverable forward indicated an open in the 85.56–85.58 range, compared to 85.6350 in the previous session. The rupee is likely to move marginally higher, if at all, on the back of the weakness in the dollar, a currency trader at a bank said, noting that recent upticks in the currency have consistently fizzled out amid incessant dollar demand. The dollar index dropped 0.4% on Tuesday and extended losses in Asian trading, falling below the key 100 handle. The fall boosted Asian currencies, which rose between 0.1% and 0.4%. Comments from Fed officials on Tuesday reinforced concerns around the U.S. economic outlook amid uncertainty tied to President Trump's trade policies. St. Louis Fed President Alberto Musalem warned that despite recent cooling in U.S.-China trade tensions, the U.S. labor market is likely to weaken and prices could increase. Atlanta Fed President Raphael Bostic said the U.S. economy may be on the brink of a price-hike wave. Long-term U.S. Treasuries sold off, pushing the 10-year yield back to the 4.50% level, while short-maturity yields were broadly unchanged. The further steepening of the yield curve possibly reflected concerns about the U.S. fiscal outlook and higher inflation, MUFG Bank said in a note. "There is possibly fading market confidence towards US trade and fiscal policies," it said. Trump is urging fellow Republicans in Congress to rally behind a sweeping tax-cut proposal, which, if passed, could heighten concerns over U.S. fiscal policy. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.72; onshore one-month forward premium at 14 paise ** Dollar index down at 99.70 ** Brent crude futures up 1.6% at $66.4 per barrel ** Ten-year U.S. note yield at 4.51% ** As per NSDL data, foreign investors bought a net $109.7mln worth of Indian shares on May. 19 ** NSDL data shows foreign investors sold a net $62.2mln worth of Indian bonds on May. 19
