Indian markets well placed to absorb US Fed rate hike, says Economic Affairs Secretary Shaktikanta Das
Indian markets are well placed to absorb the 0.25% interest rate increase by the US Federal Reserve last night, the Finance Ministry said on Thursday.
"Indian markets (are) well placed to absorb the US Fed rate hike. Gradual approach in future increases augurs well for emerging markets," Economic Affairs Secretary Shaktikanta Das tweeted.
Indian markets well placed to absorb US Fed rate hike. Gradual approach in future increases augurs well for emerging markets.
— Shaktikanta Das (@DasShaktikanta) March 16, 2017
Stocks opened in the green as the Sensex was trading 206.40 points up at 29,604.51. The Nifty put up a good show by scaling a new intra-day peak.
ALSO READ: Sensex, Nifty soar over US Fed rate hike
Ditto with the rupee, which continued with its solid performance by appreciating another 47 paise to hit a new 16-month high at 65.22 against the dollar in early trade on Thursday.
As popularly expected, the US Federal Reserve raised its benchmark interest rate for the second time in three months and forecast two additional hikes this year.
The Fed's key short-term rate is up by a quarter-point to a still-low range of 0.75% to 1%.
"In view of realised and expected labour market conditions and inflation, the committee decided to raise the target range for the federal funds rate... Near-term risks to the economic outlook appear roughly balanced," the Federal Open Market Committee (FOMC) said in its statement last night.