October 14, 2024
New Delhi, India
Currency Market Today
USDINR
- Trading Range: 83.96 – 84.26
- Closing Price: 84.10
The Indian Rupee fell to a record low, driven by rising concerns over a recent spike in global oil prices and foreign outflows from the equity market. India’s shrinking balance of payments surplus, alongside a widening trade deficit, has continued to weigh on the currency. Additionally, foreign exchange reserves held by the Reserve Bank of India (RBI) eased to $701.2 billion, down from a record-high of $704.9 billion the previous week, further intensifying downward pressure.
EURINR
- Trading Range: 91.85 – 92.31
- Closing Price: 92.00
The Euro steadied as traders processed the hotter-than-expected US inflation print, and signs of softness in European data. Germany’s inflation rate for September 2024 was confirmed at 1.6%, which, while subdued, aligns with expectations of further monetary easing by the European Central Bank (ECB). Markets are now pricing in a 90% probability of a 25 basis point (bps) rate cut by the ECB in October, with expectations of a 50 bps cut by year-end.
GBPINR
- Trading Range: 109.48 – 110.22
- Closing Price: 109.85
The British Pound held steady, reflecting prospects that the Federal Reserve might take a slower approach to cutting borrowing costs. Positive economic data supported the pound, with UK GDP expanding by 0.2% in August, keeping the economy on track for moderate growth in the third quarter. Additionally, industrial production rose 0.5% month-on-month, signaling improving economic conditions despite external risks.
JPYINR
- Trading Range: 56.37 – 56.71
- Closing Price: 56.60
The Japanese Yen stabilized, buoyed by expectations that the Federal Reserve will proceed cautiously with future rate cuts. Japan’s Reuters Tankan index for manufacturers improved to +7 in October from +4 in September, reflecting better sentiment. However, Prime Minister Shigeru Ishiba expressed caution, suggesting that Japan’s economic conditions may not justify additional rate hikes at this time, which kept the yen in a tight range.
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