April 16, 2023
New Delhi, India
Daily Currency Market Analysis
USD/INR:
Trading range: 83.25-83.63
Analysis: The Indian Rupee (INR) weakened against the US Dollar (USD) as the greenback continued its recent upward trend, reaching its highest level in almost five months. Moody’s retaining India’s rating with a stable outlook and projecting growth of over 6% for the next two fiscal years provided some positive sentiment. Additionally, the Asian Development Bank’s (ADB) revised growth forecast of 7% for FY25, up from the previous projection of 6.7%, indicates optimism for India’s economic trajectory.
GBP/INR:
Trading range: 103.25-105.97
Analysis: The British Pound (GBP) depreciated against the Indian Rupee (INR) as investors reacted to remarks by a Bank of England (BoE) official and assessed the global monetary policy outlook. Despite a modest 0.1% month-on-month growth in the British economy in February, BoE’s Greene’s statement suggesting that rate cuts in the UK are still distant due to persistent inflation pressure weighed on the Pound.
EUR/INR:
Trading range: 88.48-90.08
Analysis: The Euro (EUR) declined against the Indian Rupee (INR) following the European Central Bank’s (ECB) decision to maintain interest rates and its indication of readiness to cut rates. The drop in retail sales in the Euro Area in February added to concerns about economic performance. Market expectations of easing by the ECB, with 18 basis points priced in for June and 73 basis points by year-end, suggest anticipations of monetary policy accommodation.
JPY/INR:
Trading range: 54.41-54.81
Analysis: The Japanese Yen (JPY) weakened against the Indian Rupee (INR) as strong US economic data diminished expectations for multiple interest rate cuts by the Federal Reserve in the current year. Japan’s finance minister’s acknowledgment of examining factors behind yen movements indicates a cautious approach to currency management. Moreover, the decline in industrial production in Japan in February signals potential challenges for the Japanese economy.
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