July 4, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee weakened, tracking a fall in its Asian peers and pressured by strong dollar demand from local oil companies. However, India’s forex reserves increased by $816 million to $653.7 billion as of June 21. Meanwhile, India’s HSBC Manufacturing PMI rose to 58.3 in June from the previous reading of 57.5. The trading range for the USDINR for the day is 83.49-83.65.
EURINR
The euro remained in range as investors geared up for Eurozone inflation data for June. ECB President Lagarde indicated that the central bank is not in a hurry to cut interest rates further, needing more time to assess inflation and economic trends. Additionally, ECB data shows that Eurozone bank lending growth is hovering near zero. The trading range for the EURINR for the day is 89.49-89.93.
GBPINR
The GBP steadied as the UK braces for upcoming parliamentary elections. The Nationwide House Price Index in the UK rose by 1.5% year-on-year in June 2024. However, the UK Manufacturing PMI was revised lower to 50.9 in June 2024 from a preliminary estimate of 51.4. The trading range for the GBPINR for the day is 105.47-105.71.
JPYINR
The JPY depreciated due to stark interest rate differentials between Japan and the US. The lack of urgency from the Bank of Japan to normalize monetary settings also weighed on the currency. Finance Minister Suzuki reiterated that the government remains vigilant to currency moves, stating that foreign exchange levels reflect a complex mix of factors. The trading range for the JPYINR for the day is 51.52-52.44.
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