Federal Rate
This query is : Resolved
Dasharath Appa Pujari
(Querist)
12 December 2007
How the Fed rate affects the market volatility ?
S.Srinivasaraghavan
(Expert)
18 December 2007
In simple terms if there is Fed rate cut, the dollar funds will earn less income locally and can move away from US. The vice versa can also be true. This movement will have implications on capital movements affecting the dollar price in terms of other currencies.
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