Currency Market Analysis May 21, 2024: Rupee Stays Flat Amid Dollar Demand; Euro and Yen Gains

May 21, 2024

New Delhi, India

Daily Currency Market Analysis


  • Trading Range: 83.50 – 83.26
  • Closing Price: 83.30
  • The Indian Rupee closed flat against the US Dollar, pressured by dollar demand from local oil companies and likely equity-related outflows. Despite this, the rupee remained stable due to potential interventions by the Reserve Bank of India (RBI). India’s merchandise trade deficit increased to $19.1 billion in April from $15.60 billion in March, and dollar-rupee forward premiums ticked higher, with the 1-year implied yield up by 2 basis points to 1.70%.


  • Trading Range: 90.71 – 90.31
  • Closing Price: 90.54
  • The Euro gained as softer-than-expected US inflation data bolstered bets for a September interest rate cut from the Federal Reserve. The Eurozone economy expanded by 0.3% quarter-on-quarter in the first three months of 2024, while industrial production in the Euro Area rose by 0.6% month-over-month in March 2024.


  • Trading Range: 105.90 – 105.38
  • Closing Price: 105.75
  • The British Pound surged due to a weaker dollar after softer US inflation data reinforced the view that the Federal Reserve will deliver its first rate cut in September. Additionally, the possibility of a rate cut by the Bank of England in June has risen to 50%, with traders anticipating two quarter-point cuts by the end of the year. However, the UK employment data showed job market conditions deteriorating for the third consecutive month.


  • Trading Range: 53.73 – 53.43
  • Closing Price: 53.52
  • The Japanese Yen strengthened amid a weakening of the dollar, spurred by recent data reinforcing bets that the Federal Reserve will start cutting interest rates in September. However, Japan’s economy contracted by 2.0% in Q1 2024, and its GDP shrank by 0.5% quarter-on-quarter in Q1 2024, compared to market estimates of a 0.4% fall.

Latest Q4 Results

Stock Market Updates


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.