In another instance of aggressive policymaking, the Swiss National Bank slashed its key benchmark interest rate by 100bp in a surprise decision earlier yesterday. By reducing its three-month Libor target rate to 1.0%, the SNB will “provide the Swiss Franc money market generous and flexible supply of liquidity.” The swift move comes amid efforts by central banks like the RBA and RBNZ to side-step the affect of global recessionary conditions on the domestic economy.Today in the Asian Market the Yen couold rise further as a large fall in U.S stocks, will keep risk aversion alive and well heading
into the weekend. Rupee Opened today at 50.45000/50.4600 against its previous close of 50.2000 /50.2100 and expected to trade in 49.9000–50.6000 range.
The Indian Rupee opened weak However, dollar sales from state-owned banks presumably on behalf of
Reserve Bank of India prevented further rise in the spot rate.With Stocks rising we expect the Rupee also to strengthen.
