UAE: The Indian rupee and the dirham trade within a small range
Forex traders claim that persistent outflows of foreign funds affected investor mood.
Early on Wednesday, the Indian rupee was trading in a limited range vs the UAE dirham, with local equities showing little movement.
Forex traders reported that prolonged withdrawals of foreign funds were impacting investor mood, causing the rupee to trade in a limited range.
The domestic currency began at 83.31 (Dh22.7) versus the dollar at the interbank foreign exchange. It then reached a high of 83.30 and a low of 83.32 against the dollar.
As investors reduced some of their early euphoria over the potential of an end to U.S. rate hikes, Asian markets retreated from their 2-1/2-month high on Wednesday, and the dollar found support.
Tuesday was the highest level since September for MSCI's broadest index of Asia-Pacific shares outside of Japan, which has increased by more than 3% since a week ago. However, it dropped 0.2% in Wednesday's opening trading. The Nikkei soared 0.5% in Japan.
The S&P 500 lost 0.2% overnight, breaking a winning run of five sessions. Chipmaker Nvidia's revenue after market close exceeded Wall Street estimates by a wide margin, but the company's pessimistic sales prognosis for China caused shares to drop 1.7%.
Early in the Asia day, S&P 500 futures dropped 0.1% and Nasdaq futures dropped 0.2%. The US Thanksgiving holiday on Thursday is expected to lighten volumes for the remainder of the week.
The minutes of the meeting were made public by the Federal Reserve overnight, but traders felt that the statement from officials to "proceed carefully" from this point on was not new.
In trade with Asia, ten-year Treasury rates were slightly lower at 4.40%. Since the Fed maintained rates stable early in the month, they have decreased by roughly 50 basis points.
Interest rate futures markets price in roughly 90 basis points of rate reductions through 2024, with a 30% possibility that they start as early as March, and nearly no likelihood that the Fed will increase again.