INR not able to appreciate due to flow of negative news one after another . Now it looks it may cross 57 level may be by tomorrow . First the RBI decison not to drop repo rate to boost growth impacted the market . This would have given some psycological support . Immediately after that Mr FITCH dowgraded India Rating outlook to Negative following the foot step of S&P . This took the rate close to 56 level . Last week the poor IIP data and Increasing inflation impacted the sentiment badly . In the policy front also Government is not doing any thing as they are busy in real politics for President election . Government is talking much and sounding positive about the liberalisation but how they will do it no one knows so market is not discounting these voice .
The market mood after the FOMC meeting ( USA central Bank ) yesterday is negative making USD stronger against all currecy . INR has touched all time low of 56.56 . Market has also reacted to the latest production data released for China which is discouraging
summary of FOMC meeting
1. extention of operation twist till the end of 2012 . at the current pace and using the sale / purchase bucket
2. Interest rate outlook not changed . kept low
3. 2012 GDP growth lowered ( 1.9%~2.4% ) from the earlier view of 2.4%~2.9%
4. 2013 GDP growth lowered ( 2.2% ~2.8%) from the earlier view of 2.7% ~3.1%
5.Unemployment rate revised upward to 8.00%~8.2% from the earlier view of 7.8% ~8.00%
The market mood after the FOMC meeting ( USA central Bank ) yesterday is negative making USD stronger against all currecy . INR has touched all time low of 56.56 . Market has also reacted to the latest production data released for China which is discouraging
summary of FOMC meeting
1. extention of operation twist till the end of 2012 . at the current pace and using the sale / purchase bucket
2. Interest rate outlook not changed . kept low
3. 2012 GDP growth lowered ( 1.9%~2.4% ) from the earlier view of 2.4%~2.9%
4. 2013 GDP growth lowered ( 2.2% ~2.8%) from the earlier view of 2.7% ~3.1%
5.Unemployment rate revised upward to 8.00%~8.2% from the earlier view of 7.8% ~8.00%
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