July 12, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee ended marginally lower due to slight pressure from importers’ dollar bids. Federal Reserve Chair Jerome Powell highlighted a better-balanced labor market and acknowledged progress on cooling inflation, causing the odds of a rate cut in September to ease slightly from 76% to 73%.
EURINR
The Euro dropped, driven by a stronger dollar following Federal Reserve Chair Jerome Powell’s testimony. Despite this, investors still expect the ECB to cut interest rates once or twice this year. The annual inflation rate in the Euro Area eased to 2.5% in June, but the core rate remained steady at 2.9%.
GBPINR
The GBP weakened after Fed Chair Powell’s cautious stance on rate cuts during his congressional testimony. The UK economy is estimated to have expanded by 0.2% after remaining unchanged in April. BOE policymaker Haskel advocated for holding interest rates at their current levels as price pressures in the job market remain firm.
JPYINR
The JPY depreciated as the dollar firmed up after Federal Reserve Chair Jerome Powell’s speech. The Bank of Japan is under pressure to normalize monetary settings more aggressively as a weak yen increases import costs, raising inflationary risks. Producer prices in Japan increased by 2.9% year-on-year in June 2024.
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