May 2, 2023
New Delhi, India
Daily Currency Market Analysis
USD/INR
The last traded price of USDINR was 83.45. The trading range was between 83.53-83.44.
Analysis: The Indian Rupee (INR) ended mildly higher against the US Dollar (USD) aided by dollar sales from foreign and state-run banks. The Federal Reserve’s decision to hold its policy rate steady and slow its pace of quantitative tightening starting June 1st may have influenced market sentiment. Additionally, the rise in US employment costs during the first quarter suggests potential inflationary pressures, impacting the Rupee’s movement.
EUR/INR
The last traded price of EURINR was 89.38. The trading range was between 89.58-88.91.
Analysis: The Euro (EUR) consolidated against the Indian Rupee (INR) as investors awaited overall inflation figures for the Eurozone, seeking cues on the European Central Bank’s (ECB) policy trajectory. While German retail sales increased in March, German import prices eased, reflecting mixed economic indicators that may have contributed to the Euro’s stability against the Rupee.
GBP/INR
The last traded price of GBPINR was 104.52. The trading range was between 104.76-104.07.
Analysis: The British Pound (GBP) gained ground against the Indian Rupee (INR) amidst mixed guidance from the Bank of England (BoE) regarding the inflation outlook. Investors’ uncertainty about the timing of BoE’s interest rate cuts, anticipated in the June or August meeting, influenced market sentiment. Key events such as the Federal Reserve’s policy decision and the Non-Farm Payroll report were closely watched, impacting the Pound’s performance.
JPY/INR
The last traded price of JPYINR was 54.01. The trading range was between 54.49-52.82.
Analysis: The Japanese Yen (JPY) weakened against the Indian Rupee (INR) as the dollar gained ground ahead of the US Federal Reserve’s policy meeting. Despite retail sales rising and unemployment remaining steady in Japan, the focus on the Federal Reserve’s decisions overshadowed domestic economic indicators, contributing to the Yen’s decline against the Rupee.
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