October 24, 2024
New Delhi, India
Currency Market Analysis:
USDINR:
- Trading Range: 84.05 – 84.13
The Indian Rupee slipped amid concerns over likely equity outflows, but sharp declines were limited by RBI intervention. A deputy of the Reserve Bank of India highlighted that climate change and technological risks could pose a threat to the country’s inflation targeting. Despite a temporary slowdown in the second quarter, aggregate demand in India is expected to recover.
EURINR:
- Trading Range: 90.85 – 91.37
The Euro fell as traders anticipated further monetary policy easing from the European Central Bank (ECB). Recent comments from ECB President Christine Lagarde suggested a downward revision in the economic outlook, which contributed to the currency’s weakness. The Eurozone’s adjusted current account surplus also shrank in August, reflecting slower economic activity.
GBPINR:
- Trading Range: 108.9 – 109.52
The British Pound fell as investors focused on the relative strength of the U.S. dollar, driven by the U.S. economy’s resilience. The UK’s public sector net borrowing rose to £16.6 billion in September 2024, adding to concerns about the country’s fiscal health. Additionally, British inflation fell more than expected to 1.7%, below the Bank of England’s 2% target, heightening expectations of further rate cuts.
JPYINR:
- Trading Range: 55.59 – 56.07
The Japanese Yen depreciated as market participants feared the possibility of another currency intervention by Japanese authorities due to increased volatility. Data showed that Japan’s headline and core inflation rates slowed to 2.5% and 2.4%, respectively, in September, marking a five-month low. Japan’s Mimura reiterated the government’s stance on closely monitoring currency movements and warned that excessive volatility is undesirable.
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