Suryaa Business Desk: As central banks of major countries around the world announce key interest rate decisions this week, international currency... International currency markets are extremely subdued as central banks of major countries around the world announce key interest rate decisions this week. Until there is clarity on the upcoming monetary policy decisions, investors are not keen to go for any bold investments. As a result, the movements of major currency pairs continue to be within a very limited range, financial experts revealed.
The US Federal Reserve as well as the central banks of many leading countries will meet this week to take final decisions on their policy rates. At a time when inflationary conditions are changing internationally, there is a lot of excitement in the global markets about the attitude to be followed by the central banks. Traders are watching closely for any signs of a cut in interest rates. Due to this uncertainty, there is little momentum in the exchange rates of developing countries' currencies as well as major currencies.
Trading volumes in the foreign exchange markets fell as market segments adopted a completely wait-and-see attitude. Analysts believe that market direction is likely to become clear only after announcements by central banks. Experts suggest that investors should be more cautious in the current economic climate. Financial experts advise that bond and currency markets are likely to remain volatile until the central banks' decisions are announced and investment strategies should be adjusted with due caution.
