October 11, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
- Trading Range: 83.96 – 84.08
- Closing Price: 84.02
The Indian Rupee remained steady at 84 levels as the Reserve Bank of India (RBI) signaled a dovish stance by holding its benchmark policy rate at 6.5% in its October meeting, aligning with market expectations. This stability came despite an increase in foreign currency outflows and uncertainty regarding the Federal Reserve’s next move on interest rate cuts. With the Fed cautious about future rate decisions, the rupee stayed resilient, showcasing the RBI’s effective handling of inflationary pressures and liquidity concerns.
EURINR
- Trading Range: 91.91 – 92.47
- Closing Price: 92.12
The Euro dropped as investors remained cautious ahead of the European Central Bank’s (ECB) policy meeting. ECB rate-setters Francois Villeroy de Galhau and Yannis Stournaras indicated the likelihood of a quarter-point rate cut to help steer inflation back towards its 2% target. Meanwhile, Germany’s trade surplus widened to EUR 22.5 billion in August 2024, up from EUR 16.9 billion in July, but this positive data did little to lift the euro amid looming rate cut expectations.
GBPINR
- Trading Range: 109.52 – 110.32
- Closing Price: 109.85
The British Pound weakened as traders focused on escalating 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 take a more aggressive approach in cutting borrowing costs if inflation continues to ease. Additionally, British households faced rising costs as grocery price inflation edged higher, adding to the economic challenges.
JPYINR
- Trading Range: 56.49 – 56.97
- Closing Price: 56.73
The Japanese Yen slipped as market participants continued to assess the future course of the Bank of Japan’s (BoJ) monetary policy. Although average cash earnings in Japan grew by 3% year-on-year in August 2024, this represented a slowdown from July’s 3.4% growth. Additionally, Japan’s service sector PMI declined to 47.8 in September, down from 49.0 in the previous month, indicating further weakness in the sector. Investors are looking closely at wage and inflation data for future monetary policy direction from the BoJ.
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