June 10, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The Indian Rupee traded in a range of 83.28 to 83.7, ending weaker due to persistent dollar demand from local importers and foreign banks. This pressure was compounded by signs of a softening job market in the US, contrasting with a more hawkish outlook for the European Central Bank (ECB). Investors are also awaiting the Reserve Bank of India’s (RBI) monetary policy decision and the US non-farm payrolls report, both due on Friday.
EURINR
The Euro traded between 90.63 and 90.99, edging up as traders prepared for an ECB rate cut. The ECB lowered its key interest rates by 25 basis points in June, bringing the main refinancing operations rate to 4.25%. However, retail sales in the Euro Area declined by 0.5% month-over-month in April 2024, adding to economic uncertainties.
GBPINR
The British Pound surged against the Indian Rupee due to a weaker dollar, driven by softer US inflation data which reinforced the view that the Federal Reserve will implement its first rate cut in September. GBP gains were supported by speculation that the Fed will start reducing interest rates from September. In the UK, business expectations for wage growth fell sharply to 4.1% in May, while the S&P Global UK Construction PMI rose to 54.7 in May 2024, marking the highest level since May 2022.
JPYINR
The Japanese Yen traded in a narrow range of 53.4 to 53.54, stabilizing as Bank of Japan (BOJ) officials expressed concerns over inflation and economic stability. BOJ’s Toyoaki Nakamura warned that Japan might miss its 2% inflation target next year if consumption stagnates. Meanwhile, BOJ’s Himino emphasized the need to be vigilant about the yen’s weakness and its impact on the economy and inflation. On a positive note, the au Jibun Bank Japan Services PMI was revised higher to 53.8 in May 2024 from a preliminary figure of 53.6, indicating robust service sector activity.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
