August 28, 2024
New Delhi, India
Currency Market Analysis
USDINR
The Rupee ended marginally lower due to weakness among its Asian peers and dollar demand from importers. The Indian economy retained its growth momentum in the opening quarter (April-July) of the current financial year. Meanwhile, investors are currently pricing in 100 basis points of policy easing by the U.S. Federal Reserve over 2024.
EURINR
The Euro steadied as the prospects of interest rate cuts in both the US and Europe lifted market sentiment. However, German business morale declined for the third consecutive month in August, with the GfK Consumer Climate Indicator for Germany dropping to -22.0 heading into September 2024.
GBPINR
The GBP gained, supported by the strength of the UK economy and dovish comments from Federal Reserve Chair Jerome Powell. Stronger-than-expected economic data suggests that the Bank of England shouldn’t rush to cut interest rates. Additionally, British consumer confidence reached a three-year high in August.
JPYINR
The Yen remained range-bound as the US dollar gained some ground, although geopolitical risks in the Middle East drove safe-haven demand. The Bank of Japan reaffirmed its commitment to raising interest rates if inflation sustainably touches the 2% target. Meanwhile, the index of coincident economic indicators in Japan fell to 113.7 in June 2024 from a final 117.1 in the prior month.
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