For the Fed, a key marker would be how the officials respond to markets pricing in rate cuts later this year. The actual rate decision is unlikely to have an impact with a 25 basis points hike fully baked in. "Officials certainly appear to be backing "standard" 25bp increases from now on but most are warning that there is still more work to be done," ING Bank said in a note.
"Consequently, we expect to hear that ongoing interest rate hikes are "appropriate" with the balance sheet shrinking strategy remaining in place."
Meanwhile, Indian equities are having a choppy trading day
following a two-day selloff fuelled by the short seller report
on the Adani Group. The Nifty 50 Index fell to a more
than three-month low in early trading before recouping losses.
For the rupee, the uncertainty on Adani could impact foreign
flows. Foreign investors were net sellers of over $700 million
of Indian equities on Friday, according to preliminary exchange
data.
(Reporting by Nimesh Vora; Editing by Dhanya Ann Thoppil)
