October 16, 2024
New Delhi, India
Currency Market Analysis
USDINR
- Trading Range: 84.03 – 84.15
- Closing Price: 84.09
The Indian Rupee ended little changed as the sharp drop in crude oil prices helped offset the negative impact of weakness in other Asian currencies. Foreign investors pulled out nearly $8 billion from local stocks, reversing inflows of about $11.1 billion in September. On the economic front, India’s consumer inflation rose to 5.5% in September 2024, surpassing the expected 5%, adding pressure on the currency.
EURINR
- Trading Range: 91.53 – 91.95
- Closing Price: 91.74
The Euro dropped slightly as oil prices fell, alleviating fears of renewed inflationary pressures in the Eurozone. An ECB survey revealed that Eurozone banks are seeing a rebound in loan demand as borrowing rates fall. On the inflation front, Germany’s wholesale prices dropped by 1.6% year-on-year in September 2024, reflecting easing price pressures in Europe’s largest economy.
GBPINR
- Trading Range: 109.59 – 110.21
- Closing Price: 109.87
The British Pound steadied after fresh UK labor data reinforced market expectations that the Bank of England (BOE) will continue to cut borrowing costs. Wage growth in the UK slowed, hitting a fresh two-year low in the three months to August, signaling easing pay pressures. Inflation data and retail sales figures, due later this week, will offer more insights into price pressures and consumer strength.
JPYINR
- Trading Range: 55.92 – 56.82
- Closing Price: 56.15
The Japanese Yen weakened further as the US dollar strengthened on expectations that the Federal Reserve will take a more moderate approach to cutting interest rates. Japan’s industrial production fell by 3.3% month-on-month in August 2024, and dovish signals from BOJ Governor Ueda coupled with Prime Minister Shigeru Ishiba’s opposition to further rate hikes, added downward pressure on the currency.
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