June 4, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The Indian Rupee traded in the range of 83.18 to 83.72, ending lower due to month-end dollar demand from importers and investor caution ahead of the country’s general elections. The core personal consumption expenditure price index in the US rose by 0.2% month over month in April. Meanwhile, the Indian economy expanded by 7.8% year-on-year in the quarter ending March 2024, highlighting strong economic performance despite current currency pressures.
EURINR
The Euro traded between 89.97 and 90.95, closing at 90.32. The currency gained as higher-than-expected inflation in the Eurozone added to uncertainties over the European Central Bank’s potential rate cuts this year. However, German retail sales fell by 1.2% in April compared to the previous month, and German import prices decreased by 1.7% year-on-year in April 2024, indicating mixed economic signals from Europe’s largest economy.
GBPINR
The British Pound surged initially due to a weaker dollar after softer US inflation data supported expectations of a Fed rate cut in September. However, the GBP steadied as the US Dollar stabilized following a steep correction induced by downwardly revised US Q1 GDP data. British businesses showed the highest confidence in eight years, with hiring plans at their strongest since 2017. Additionally, the Nationwide House Price Index in the UK rose by 1.3% year-on-year in May 2024, reflecting robust economic conditions despite recent volatility.
JPYINR
The Japanese Yen traded in the range of 53.22 to 53.52, closing at 53.38. The Yen steadied as BoJ’s Adachi emphasized the gradual reduction of bond purchases to ensure long-term yields accurately reflect market signals. Retail sales in Japan grew by 2.4% year-on-year in April 2024, accelerating from a revised 1.1% rise in March. Additionally, BoJ’s Adachi indicated support for raising interest rates if a weaker Yen leads to increased inflation, reflecting the central bank’s cautious approach amid ongoing economic challenges.
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