The US dollar index rose sharply last week and tested a 1-month high. The US dollar index edged up amid ongoing debate about the Fed’s monetary policy stance and amid increased safe-haven buying on the back of geopolitical tensions and growth worries.The trend in the US dollar has been one of the key price determining factors for gold and this relationship remains intact as market players try to assess Fed’s monetary policy stance.
Banks unlikely to reduce deposit rates despite RBI easing
Following the latest repo rate decrease, bankers foresee only slight adjustments to deposit rates. The landscape, characterized by sluggish savings yields and elevated credit-deposit ratios,