Zee Media Bureau
New Delhi: The US Federal Reserve is widely expected to announce a hike in interest rates at the end of its two-day policy meeting on Wednesday.
It would be the first US rate hike in nearly a decade, signalling the beginning of an end to an expansionary monetary policy that has supplied a tidal wave of liquidity to risk asset markets globally.
Also read: What's so important about the Federal Reserve's interest rate?
Let's have a look at how the US Fed rate hike will impact Indian stocks, gold and rupee.
FED'S IMPACT ON RUPEE
Extreme volatility in domestic equities as well as expectations that the Federal Reserve is on track to raise interest rates for the first time since 2006 will impact the rupee sentiment.
Also Read: Key reasons why the rupee is falling
FED'S IMPACT ON STOCK MARKET
If the Fed lays out an aggressive schedule of future rate increases, stock markets could become very volatile and even plummet, say strategists.
Also read: Know which stocks will make your portfolio Fed-proof
Also Watch: How Indian stock markets will react if US Fed hikes interest rates ...
FED'S IMPACT ON GOLD
Also Read: Know how Fed decision will affect gold prices
Investors have been cutting gold positions in anticipation of a first interest rate increase while the yellow metal has fallen about 10 percent so far this year. Higher rates could dent demand for the non-interest paying asset, while also boosting the dollar.
