Overview

• The Federal Reserve cut rates by 25 basis points and signalled a measured pace of easing, with its dot plot pointing to roughly 50 bps more this year and only one cut in 2026.
• The dollar sank to its weakest since February 2022 right after the Fed decision before snapping back the next day, helped by stronger U.S. jobless-claims data.
• India’s rupee slid to about 88.20 on Thursday then recovered to close at 88.11 on Friday, helped by reported RBI intervention and optimism over U.S.–India tariff talks after officials flagged possible relief by late November.
• Sterling weakened after the Bank of England kept rates on hold and slowed gilt sales to about £70 billion, with a further hit from UK borrowing of roughly £83.8 billion in April–August.
• Pakistan’s rupee extended its rally with a 31st straight interbank gain, highlighting divergent moves across South Asian currencies during the global FX volatility.