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Currency Market Analysis May 24, 2023: Rupee Strengthens Amid Importer Dollar Demand; Euro Steady, Yen Weakens

usdinr

May 24, 2024

New Delhi, India

Daily Currency Market Analysis

USD/INR

  • Previous Trading Range: 83.19 – 83.32
  • Previous Closing Price: 83.24

The Indian Rupee ended slightly stronger on [Previous Day], supported by dollar demand from local importers. The recent FOMC minutes revealed that the data had not significantly increased confidence in progress toward the Fed’s 2% medium-term inflation target. Additionally, the Reserve Bank of India (RBI) net bought $13.25 billion in the spot forex market in March, as per the latest bulletin.

EUR/INR

  • Previous Trading Range: 90.41 – 90.94
  • Previous Closing Price: 90.00

The Euro steadied on [Previous Day] as investors awaited wage and survey-based growth data to gain insights into the future direction of interest rates. Both European Central Bank (ECB) and Federal Reserve officials indicated uncertainty regarding the path of monetary easing. The Eurozone’s current account surplus saw a significant jump in March, providing some support to the currency.

GBP/INR

  • Previous Trading Range: 106.11 – 105.59
  • Previous Closing Price: 105.69

The British Pound surged on [Previous Day] due to a weaker dollar, influenced by softer US inflation data that bolstered expectations of a Fed rate cut in September. The GBP also strengthened following higher-than-expected inflation figures in the UK. The annual inflation rate in the UK eased to 2.3% in April, nearing the Bank of England’s target of 2%. However, British manufacturing orders contracted at the fastest rate since November, and future price hike expectations abated.

JPY/INR

  • Previous Trading Range: 53.18 – 52.97
  • Previous Closing Price: 53.03

The Japanese Yen dropped on [Previous Day] as the dollar strengthened after Fed officials largely called for caution regarding interest rate cuts. The Bank of Japan (BOJ) maintained its usual process and pace of buying government bonds after a surprise dip in purchases earlier this week. Additionally, Japan’s trade deficit increased to JPY 462.50 billion in April 2024 from JPY 429.79 billion in the same month of the previous year.

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