Currency Market Analysis: Rupee Gains Fueled by Economic Optimism and Central Bank Signals


April 15, 2023

New Delhi, India

Daily Currency Market Analysis


The last traded price of USDINR was 83.439 down by -0.21%. 

Trading range: 83.14-83.32

Analysis: The Indian Rupee (INR) strengthened against the US Dollar (USD) likely due to anticipated inflows and decreased US bond yields. The rise in the annual US inflation rate to 3.5% in March, surpassing market expectations, may have influenced this trend. Additionally, soaring consumer confidence in India, reaching its highest level since mid-2019, likely contributed to the Rupee’s appreciation.


The last traded price of GBPINR was 103.84 down by -0.20%. 

Trading range: 105.14-105.9

Analysis: The British Pound (GBP) stabilized against the Indian Rupee (INR) as investors assessed the UK’s economic outlook amidst uncertainty. Market anticipation for British gross domestic product (GDP) figures suggests sensitivity to economic data releases. Signs of a weakening British job market, evidenced by a slowdown in wage growth, added to concerns surrounding the Pound’s stability.


The last traded price of EURINR was 88.78 down by -0.21%. 

Trading range: 89.94-90.66

Analysis: The Euro (EUR) maintained its position against the Indian Rupee (INR). Confidence in the Eurozone’s inflation trajectory towards the ECB’s 2% target, as indicated by policymakers, may have stabilized the Euro. While the ECB kept interest rates unchanged as anticipated, signaling readiness for rate cuts suggests a cautious approach to economic management. Despite efforts by Eurozone banks to ease mortgage requirements, dwindling demand persists, indicating ongoing economic challenges.


The last traded price of JPYINR was 54.24 down by -0.48%. 

Trading range: 54.8-55.14

Analysis: The Japanese Yen (JPY) remained relatively stable against the Indian Rupee (INR) despite a strong domestic producer inflation report. Finance Minister Shunichi Suzuki’s statement regarding authorities’ preparedness to address excessive yen movements highlights a commitment to stability. Governor Ueda’s expectation for continued accommodative monetary conditions from the BOJ suggests ongoing efforts to support economic recovery.