July 5, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee closed marginally weaker amid dollar demand from local corporates and state-run banks, alongside weakness in Asian currencies. Additionally, the HSBC India Services PMI was revised higher to 60.5 in June 2024 from a flash reading of 60.4. The HSBC India Composite PMI stood at 60.9 in June 2024, aligning with flash data and accelerating from May’s five-month low of 60.5. The trading range for USDINR for the day is 83.51-83.65.
EURINR
The euro gained after policymakers signaled the need for more evidence that price pressures are under control. Despite the eurozone being “very advanced” on the disinflationary path, there remain “question marks” over the economic growth outlook. ECB’s Makhlouf indicated one more interest rate cut this year, stating that two cuts would be “too far”. The trading range for EURINR for the day is 89.61-90.15.
GBPINR
The GBP strengthened against the US Dollar as Fed’s Powell expressed confidence that disinflation has resumed. However, BOE policymakers are concerned about stubborn inflation in the UK’s service sector. The S&P Global (NYSE) UK Services PMI fell to 52.1 in June 2024 from 52.9 in May. The trading range for GBPINR for the day is 105.72-106.24.
JPYINR
The JPY dropped, pressured by stark interest rate differentials between Japan and the US. The au Jibun Bank Japan Services PMI was revised downward to 49.4 in June 2024 from a flash reading of 49.8. Traders continue to evaluate the Bank of Japan’s monetary policy outlook amid a sharply depreciating Japanese Yen. The trading range for JPYINR for the day is 51.39-52.05.
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.
