The Indian rupee rose to a near two-week high against the U.S. dollar on bets that the budget proposals may help spur economic growth.
The Finance minister has exercised fiscal prudence and has kept the Fiscal Deficit targets for FY 2016 – 17 at 3.5 per cent that is positive for ru-pee. In this financial year the fiscal deficit has been at 3.9 per cent of GDP.
Standard & Poor's Ratings Service and Moody's Investors Service have said India’s sovereign rating is unlikely to be changed because of the pro-posals in the federal budget, as the government still has to contend with high debt levels and its fiscal deficit target is exposed to global vulnera-bilities.
China's central bank on Monday reduced the amount of cash that banks must hold as reserves for the fifth time since February 2015, as it seeks to revive a slowing economy. The People's Bank of China (PBOC) said that it would cut the reserve requirement ratio by 50 basis points for all banks, taking the ratio to 17 percent for the country's biggest lenders. The cut is effective March 1.
Japan's industrial output rose 3.7 percent in January, up for the first time in three months, government data showed on Monday, in what may be a temporary pickup in factory activity amid weak domestic and external demand. The rise compared with economists' median estimate of a 3.3 percent gain in a Reuters poll, data by the Ministry of Economy, Trade and Industry showed.