July 29, 2024
New Delhi, India
Daily Market Analysis
USDINR
The rupee ended flat as a rally in the Chinese yuan and likely intervention from the Reserve Bank of India (RBI) balanced the market. The USDINR trading range for the day was 83.7-83.88. The US economy expanded by an annualized 2.8% in Q2, surpassing market expectations of 2% and up from 1.4% in Q1. The Indian central bank intervened in both the local spot and non-deliverable forward market to support the rupee.
EURINR
The EURINR trading range was 90.63-90.99. The euro steadied after weak PMI data for the Eurozone raised expectations that the European Central Bank (ECB) will slash interest rates twice more this year. Bank lending to households in the Eurozone increased by 0.3% year-on-year to €6.879 trillion in June 2024. The Ifo Business Climate indicator for Germany declined for the third consecutive month to 87 in July 2024.
GBPINR
The GBPINR trading range was 107.74-107.98. The British pound remained steady after data showed that the UK’s private sector activity expanded robustly in July. The PMI data indicated a slight acceleration in services activity growth and the strongest manufacturing output since February 2022. There has been no significant change in Bank of England rate cut bets, with the probability of an August cut remaining around 40%.
JPYINR
The JPYINR trading range was 54.18-55.48. The Japanese yen rose as market participants unwound carry and short trades ahead of the Bank of Japan’s (BOJ) policy meeting. Top Japanese officials have been urging the central bank to more clearly communicate its intention to normalize monetary settings. BOJ data suggests authorities may have bought nearly 6 trillion yen on July 11-12 via intervention.
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