March 19, 2023
New Delhi, India
USDINR
The trading range for the day was 82.81-82.99, with the Rupee closing lower due to pressure from weakness in Asian currencies and dollar purchases by state-run banks. India’s forex reserves surged to a over two-year high of $636.1 billion. RBI highlighted “large and repetitive food price shocks” as a significant risk to the ongoing disinflation trend.
EURINR
Trading between 90.14-90.56, the Euro remained range-bound as investors anticipated upcoming central bank meetings in major economies. ECB’s Rehn mentioned discussions about rate reductions at the March meeting, indicating preparations for the central bank’s first interest rate cut after revising inflation expectations for 2024 and 2025.
GBPINR
Traded within a range of 105.36-105.78, the Pound stabilized as investors awaited UK inflation data and the BoE decision for fresh guidance. UK public’s inflation expectations fell, as indicated by a Bank of England survey. The BoE is expected to maintain interest rates unchanged as UK inflation remains below the 2% target.
JPYINR
Trading between 55.6-55.8, the Yen weakened as investors prepared for the Bank of Japan’s policy decision. BOJ officials reiterated the possibility of normalizing monetary policy if a positive cycle between rising wages and inflation is sustained. Japan’s core machinery orders fell by 1.7% month-on-month to 823.8 billion yen in January 2024.
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