October 22, 2024
New Delhi, India
Currency Market Today
USDINR:
- Trading Range: 84.05 – 84.11
The Indian Rupee weakened due to equity outflows, but significant dollar sales managed to prevent a steeper decline. Market participants are pricing in 44 basis points of rate cuts across the Federal Reserve’s remaining two meetings in 2024. Additionally, India’s retail inflation surged to a nine-month high of 5.5% in September, increasing pressure on the currency.
EURINR:
- Trading Range: 91.09 – 91.39
The Euro declined as investors evaluated the European Central Bank’s (ECB) decision to cut rates by 25 basis points, lowering the deposit rate to 3.25%—the ECB’s third reduction this year. Despite the rate cut, the Euro Area’s current account surplus widened to €35.2 billion in August 2024, up from €26.8 billion a year ago, reflecting robust trade performance despite broader economic challenges.
GBPINR:
- Trading Range: 109.12 – 110.16
The British Pound rose following the release of UK retail sales data, which unexpectedly showed a 0.3% month-over-month increase in September 2024, after a strong 1% growth in August. The better-than-expected retail data may influence speculation regarding the Bank of England’s (BoE) potential rate-cut path in the upcoming months, lending support to the GBP.
JPYINR:
- Trading Range: 55.82 – 56.52
The Japanese Yen weakened as domestic inflation slowed, dampening expectations of hawkish monetary action by the Bank of Japan (BoJ). Japan’s core consumer price index (CPI) rose 2.4% year-on-year in September 2024, but overall inflation fell to 2.5%, marking the lowest level since April. This reinforced dovish sentiments, reducing expectations for further monetary tightening.
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