In early trade, the rupee opened 3 paise against the dollar to 86.41 per dollar against 86.44 per dollar, although since then the rupee has been seen trading around the level of the rupee. Here, keeping the interest rates stable by the Fed again put pressure on the dollar, which had a positive impact on the rupee.
Will there be inflation in America too?
Fed has not made any changes in interest rates. Interest rates in the US will remain unchanged at 4.25-4.50%. Two more interest rates are expected to be cut in 2025.
What did Jerome Powell say?
There will be fear of increasing inflation in America. Committed to bring inflation rate to 2%. If inflation is not reduced then interest rates will not be reduced. The economy may grow at a slow pace. The unemployment rate is expected to increase to 4.4%. The economic growth estimate was reduced to 0.4% to 1.7%. The estimate of GDP growth for 2025 has been reduced to 1.7%. Uncertainty about economic activities increased. The effect of the tariff will appear over time.
Will the recession come in America?
There is uncertainty among the Fed officials regarding GDP. 17 out of 19 members are uninterrupted about GDP.
Gold continues to rise after the Fed’s decision, prices on comex remain close to a record level of $ 3050, while the domestic market also saw strength. Significantly, gold prices were seen reaching $ 3064 in the global market yesterday.
Gold reached the new peak
Gold prices continued to rise in the international market. Prices are at a high level of $ 3064. Rates in the US supported prices. Prices also increased due to geopolitical stress. Israel will continue the attack on Hamas bases in Gaza. In 2025, prices have increased by 16% so far.
Silver was also a rapid trend and silver in the global market remained stable above $ 33, while the domestic market had a turnover of more than one lakh, which saw a strength of about half per cent.
In early trade, the domestic market saw purchases in all metals except leads, where the greatest rise in copper, but the prices have reached a 10 -month high due to the rise in copper in the global market. Prices in LME and Shanghai are getting support in LME and Shanghai with the expectation of increasing demand against declining inventory.
Prices reached a 10 -month high. Low supply concerns supported prices. Prices increased due to low reserves in LME and Shanghai. China has a special scheme to promote consumer expenses. America can impose a duty on copper imports.
Due to crude oil recovering from its lowest level, Brent prices reached above $ 71, while NYMEX crude oil is trading above $ 67, which is an increase of more than half a percent. Here, the inventory level seems to be coming to a 2 -year low as the US inventory has declined by 1.7 million barrels. Also, the impact of the Fed decision to keep the interest rates stable is also supporting prices.
After yesterday’s fall, prices recovered from the lower level. American crude oil reserves declined by 1.7 million barrels. Crude oil imports in the US have come to a two -year low. Israel started the ground campaign in Gaza. Fed kept the interest rates stable within a radius of 4.25–4.50%.
In early trade, natural gas prices fell to close to 361 levels in the domestic market. Prices have increased in America. Prices rose by about 5 percent to a week’s highest level. Gas stock seasonal is 11% less than normal.
If we look at agricultural commodities, the price of sugar in the global market reached a one -month high. The dollar index was supported by weakness and low sugar production globally. Brazil’s production fell 5.5% year-on-year 5.5% in February. Isma reduced India’s production estimate to 2.4 million tonnes. ISO reduced global production estimates for 2024–25. Global production estimates were reduced from 179.1 million tonnes to 175.5 million tonnes.
