October 9, 2024
New Delhi, India
USDINR
- Trading Range: 84.00 – 84.10
- Closing Price: 84.05
The Indian Rupee ended nearly unchanged despite pressures from equity outflows, reflecting the currency’s resilience. The rupee was supported by the Indian trade minister’s statement that the currency is poised for appreciation. Additionally, India’s foreign exchange reserves hit a record high, crossing the $700 billion mark for the first time. These factors indicate strong financial health and a positive outlook for the rupee despite global market volatility.
EURINR
- Trading Range: 91.88 – 92.68
- Closing Price: 92.15
The Euro weakened following a larger-than-expected drop in German industrial orders for August, underscoring the ongoing challenges facing the Eurozone’s largest economy. ECB Vice President Luis de Guindos remarked that Eurozone inflation is on track to reach the 2% target by the end of 2025, calming some concerns about the region’s economic health. Retail sales in the Euro Area saw a modest increase of 0.2% month-on-month in August, reflecting steady but slow consumer demand.
GBPINR
- Trading Range: 109.49 – 110.89
- Closing Price: 110.31
The British Pound came under pressure due to heightened expectations of aggressive rate cuts by the Bank of England in November. Despite this, the UK housing market remained robust, with the Halifax House Price Index rising by 4.7% year-on-year in September 2024. BOE Governor Andrew Bailey hinted at a shift toward a more “activist” approach in cutting rates, signaling a potential move toward more aggressive monetary policy to support economic growth.
JPYINR
- Trading Range: 56.53 – 57.15
- Closing Price: 56.78
The Japanese Yen dropped as Atsushi Mimura, a top Japanese official, issued a verbal warning against speculative moves in the forex market. Meanwhile, Prime Minister Shigeru Ishiba and Economy Minister Ryosei Akazawa advocated for caution before raising interest rates further, given the current economic landscape. Investors are now closely watching upcoming Japanese wage data, which will provide further insight into inflationary trends and the potential direction of Bank of Japan’s monetary policy.
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