The US Federal Reserve cut the benchmark rate by 25 basis points in the latest monetary policy review , which would ease global liquidity. Such a cut is generally positive for Indian equities because lower US Treasury yields make dollar-denominated assets less appealing, encouraging Foreign Institutional Investors (FIIs) to increase allocations to emerging markets like India, thus boosting inflows and strengthening the Rupee.
Doesn’t seem to be playing out like that. USD made a ATH against INR today. Rupee seem to getting thrashed even after Fed rate cut. RBI doesn’t have enough strength to defend the rupee either. Things are looking very bleak at the moment.
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