US interest rates News

The Federal Reserve raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signalling its confidence in a growing US economy and strengthening job market.

Gold prices hit a two-week high on Monday as the dollar slumped to near 6-week lows after the US Federal Reserve`s dovish outlook on the pace of rate increases this year continued to disappoint dollar bulls. 

Gold rose as the dollar came off its highs on Wednesday, shrugging off earlier pressure from stronger-than-forecast U.S. inflation and retail sales that added to expectations for near-term U.S. interest rate rises.

India is "very well cushioned" to absorb the impact of the US Federal rate hike and the currency market will stabilise after witnessing the initial ripples, the Finance Ministry said Thursday.

The interest rate hike by the Federal Reserve reflects a strengthening US economy that will benefit emerging market economies but also make them vulnerable to volatile capital flows, Moody's Investors Service said today.

Gold prices remained steady at Rs 28,450 per 10 grams Wednesday ahead of the outcome of the ongoing Federal Reserve meet which is expected to tighten its policy sooner than later.

Gold is likely to recover to above USD 1,300 an ounce next year as a pickup in physical demand counters more potential US rate increases, a Reuters poll at an industry event showed.

The Federal Reserve may need to run a "high-pressure economy" to reverse damage from the crisis that depressed output, sidelined workers and risks becoming a permanent scar, Fed Chair Janet Yellen said on Friday in a broad review of where the recovery may still fall short.

Last month`s Federal Reserve decision not to increase US interest rates was a "close call" for several senior policymakers, according to meeting minutes released Wednesday.

The 30-share barometer Sensex was quoting sharply higher by 364.80 points, or 1.27 percent at 28,871.92 in early trade with all the sectoral indices led by banking, metal and auto were trading in the positive zone, gaining by up to 1.99 percent.  

Stock markets would keenly await the outcome of the US Fed policy meeting this week which would influence trading sentiment going ahead, say experts.

The BSE Sensex plunged by 444 points today -- its biggest single-day drop since the Brexit fallout on June 24 -- to end at nearly two-week low of 28,353.54 and the NSE Nifty went below 8,800-mark, tracking global meltdown due to heightened fears over US interest rate hike.

US retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, reinforcing views that economic growth picked up in the second quarter.

The Federal Reserve held its key interest rate unchanged Wednesday, in part due to concerns about the disruption Britain`s looming Brexit vote could have on global markets.

Gold edged higher on Friday after two days of losses but remained on track for its biggest weekly slide in nearly two months on growing expectations of an increase in U.S. interest rates as soon as next month. 

U.S. Federal Reserve officials said it would be appropriate to raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment, according to minutes from their policy meeting last month.

Gold fell more than one percent on Wednesday as the dollar hit a new three-week high following minutes of the U.S. Federal Reserve`s last policy meeting that bolstered expectations that the central bank could soon raise interest rates.  

Gold rose for a second session on Monday, as slowing economic growth in China and weakness in Asian stock markets lifted the safe-haven appeal of the precious metal.

Gold jumped to a three-week peak on Tuesday on expectations the Federal Reserve will not raise US interest rates soon and as the dollar traded close to its lowest in nearly eight months, though profit-taking chipped away at some recent gains.

Gold has climbed 16 percent in the first three months of this year, its biggest quarterly rise since 1986, as concerns over global growth battered equities and sparked a wave of safe-haven buying.