August 28, 2024
New Delhi, India
Currency Market Analysis
USDINR
The Rupee weakened slightly, tracking a dip in most Asian currencies, but managed to stay above its all-time low, as the Reserve Bank of India has recently ensured that the rupee does not fall to the psychological support level of 84. Meanwhile, Goldman Sachs has cut India’s 2024 and 2025 GDP growth forecasts.
EURINR
The Euro remained range-bound as investors grew cautious ahead of the release of the Eurozone’s August inflation data. However, lending growth in the Eurozone has accelerated to an 8-month high. Inflation in Germany and the broader Euro Area is expected to reach its lowest level in over three years.
GBPINR
The GBP gained on the back of the UK economy’s strength and dovish comments from Federal Reserve Chair Jerome Powell. Stronger-than-expected economic data suggests that the Bank of England should not rush to cut interest rates. Additionally, British consumer confidence has reached a three-year high in August.
JPYINR
The Yen gained as the prospect of Federal Reserve interest rate cuts continued to weigh on the dollar. Federal Reserve officials have raised concerns about labor market risks while expressing confidence that inflation will return to target. Meanwhile, Bank of Japan Governor Kazuo Ueda recently indicated to parliament that the central bank could adjust monetary policy if its economic projections prove correct.
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