July 3, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee weakened amid a decline in Asian peers and strong dollar demand from local oil companies, with a trading range of 83.49-83.65. This depreciation was also influenced by the rise in India’s forex reserves, which increased by $816 million to $653.7 billion as of June 21. Additionally, India’s HSBC Manufacturing PMI rose to 58.3 in June from 57.5 in May, reflecting stronger manufacturing activity.
EURINR
The euro remained in a range of 89.49-89.93 as investors awaited Eurozone inflation data for June. ECB President Christine Lagarde indicated that the central bank is in no hurry to cut interest rates further, citing the need for more time to assess inflation and economic trends. Furthermore, ECB data showed that Eurozone bank lending growth is hovering near zero, adding to the cautious sentiment around the euro.
GBPINR
The GBP traded within a range of 105.47-105.71, steadying as the UK braces for upcoming parliamentary elections. The Nationwide House Price Index in the UK rose by 1.5% year-on-year in June 2024, while the UK Manufacturing PMI was revised lower to 50.9 in June 2024 from a preliminary reading of 51.4. These economic indicators suggest mixed signals about the strength of the UK economy.
JPYINR
The JPY, with a trading range of 51.52-52.44, depreciated due to stark interest rate differentials between Japan and the US. The lack of urgency from the Bank of Japan to normalize monetary settings also weighed on the currency. Finance Minister Suzuki reiterated the government’s vigilance regarding currency moves, stating that foreign exchange levels reflect a complex mix of factors, further influencing the JPY’s performance.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
