October 10, 2024
New Delhi, India
Daily Market Analysis
USDINR
- Trading Range: 83.96 – 84.08
- Closing Price: 84.02
The Indian Rupee remained stable around the 84 mark, supported by dovish signals from the Reserve Bank of India (RBI) and rising foreign currency outflows. The RBI kept its benchmark policy rate unchanged at 6.5% during its October meeting, aligning with market expectations. Meanwhile, the Federal Reserve’s uncertainty over future interest rate cuts added some volatility to the global currency markets. Despite these factors, the rupee’s stability underscores the RBI’s cautious stance on inflation and liquidity management.
EURINR
- Trading Range: 91.91 – 92.47
- Closing Price: 92.18
The Euro dipped as investors remained on the sidelines, awaiting more clarity before the European Central Bank’s (ECB) policy meeting. Expectations are growing for another rate cut, with ECB policymakers Francois Villeroy de Galhau and Yannis Stournaras signaling potential reductions in borrowing costs by a quarter-point. Germany’s trade surplus expanded to EUR 22.5 billion in August 2024, reflecting a strengthening export market, but this was not enough to lift the euro amid rate-cut expectations.
GBPINR
- Trading Range: 109.52 – 110.32
- Closing Price: 109.94
The British Pound weakened as investors continued to assess the impact of geopolitical tensions in the Middle East and the Bank of England’s (BoE) next steps in its easing cycle. BoE Governor Andrew Bailey hinted that the central bank might adopt a more aggressive approach to lowering borrowing costs to combat inflation. Additionally, British consumers faced mounting budgetary pressures as grocery price inflation rose, contributing to concerns over the country’s economic outlook.
JPYINR
- Trading Range: 56.49 – 56.97
- Closing Price: 56.73
The Japanese Yen slipped as market participants digested the Bank of Japan’s (BOJ) monetary policy direction. While average cash earnings in Japan increased by 3% year-on-year in August 2024, this marked a slowdown from July’s 3.4% growth. Japan’s service sector PMI also fell to 47.8 in September, a decline from 49.0 in the previous month, signaling continued challenges in the sector. Investors are keeping an eye on future developments in Japan’s monetary policy and wage data for further direction.
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