August 14, 2024
New Delhi, India
Daily Market Analysis
USDINR
The USDINR trading range for the day was 83.94-84.04. The rupee slipped due to a decline in its Asian peers, though the RBI’s intervention remained intact. The Fed’s interest rate futures are pricing in approximately 100 basis points of rate cuts throughout 2024, beginning in September. Dollar-rupee forward premiums also slipped, with the 1-year implied yield down by 2 basis points at 2.02%.
EURINR
The EURINR trading range was 91.6-91.92. The euro stayed within range as investors awaited U.S. inflation data to understand the extent of the Fed’s interest rate cuts this year. Germany’s wholesale prices decreased slightly by 0.1% year-on-year in July 2024, and the German economy unexpectedly contracted by 0.1% quarter-on-quarter in the second quarter of 2024.
GBPINR
The GBPINR trading range was 106.94-107.28. The pound steadied as investors awaited crucial economic data for insights into future monetary policy. BoE’s Mann noted that UK wage pressures might persist for years, while British employers plan to raise pay by 3% over the coming year, the lowest increase in two years.
JPYINR
The JPYINR trading range was 57.04-57.38. The yen dropped as the dollar strengthened on better-than-expected U.S. economic data. The Bank of Japan’s hawkish shift has led to a rapid unwinding of yen carry trades. BOJ Deputy Governor Shinichi Uchida reiterated that the central bank won’t raise rates when the market is unstable.
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