Live
- Swift CID investigation to ensure severe punishment to the accused: CM
- Mysore hotels offer discounts, freebies to boost voter turnout
- Did Rashmika Mandanna Double Her Paycheque?
- BJP needs only 399 more seats to reach 400 mark says Gujarat CM M Bhupendrabhai Patel
- OnePlus 8 and 8 Pro Conclude Software Update Cycle: Find Details
- Google Integrates Keep Reminders into Tasks for Enhanced Productivity
- Google Meet's New 'Switch Here' Feature Facilitates Seamless Call Transfers
- Hyderabad: Time has come to uproot corrupt and dynastic parties says Pushkar Singh Dhami
- Hyderabad: Talasani campaigns for Padma Rao Goud
- WhatsApp Update: Green-Themed Interface Rolled Out for iOS Users
Greenback soar$
The US dollar rose against other major currencies as robust economic data from the country bolstered market expectation for an interest-rate hike by the year-end. The commerce department reported on Thursday that the US economy expanded at an annual rate of 2.3 per cent in the second quarter, a moderate bounce from the revised 0.6 per cent increase in the first quarter, Xinhua news agency reported.
Rate hike expected later this year, say analysts
Several commodities and services for instance foreign education will become expensive, domestic consumers will not get full benefit of falling global gold prices
New York: The US dollar rose against other major currencies as robust economic data from the country bolstered market expectation for an interest-rate hike by the year-end. The commerce department reported on Thursday that the US economy expanded at an annual rate of 2.3 per cent in the second quarter, a moderate bounce from the revised 0.6 per cent increase in the first quarter, Xinhua news agency reported.
The increasing price of dollar will create a cost pull inflation of several commodities and services for instance foreign education will become expensive. Imported goods ranging from television to electronic goods, computers and automobiles will become costlier. The domestic consumers will not get the full benefit of falling global gold prices.
However, the companies exporting software and other services will gain. But production of many goods using imported components will become costlier. Though the latest reading of dollar was below market consensus of a 2.5 per cent gain, it still pointed to a sound recovery of US economy from the first quarter weakness.
The central bank said that the US economy was expanding "moderately", with additional improvements in housing and the labour market. Analysts said the Fed had upgraded its assessments of economic performance, supporting the popular view that the first rate-hike since 2006 may occur later this year.
The dollar index, which measures the greenback against six major currencies, was up 0.59 per cent at 97.549 in late trading. In late New York trading, the euro declined to $1.0921 from $1.1006 in the previous session, and the British pound dropped to $1.5600 from $1.5610 in the previous session. The Australian dollar decreased to $0.7286 from $0.7298.
Rupee at 64.13/$
Notwithstanding strong rally in domestic equity markets, month-end demand for the dollar from importers predominantly weighed on the rupee, forex dealers said. The rupee slipped by 9 paise to end at 64.13 against the US dollar on sustained demand from banks and importers despite weak overseas sentiment.
