October 25, 2024
New Delhi, India
Currency Market Analysis:
USDINR:
- Trading Range: 84.06 – 84.12
The Indian Rupee remained flat against the dollar, showing resilience compared to other Asian currencies despite pressure from a strong dollar. The IMF has maintained India’s GDP growth forecast at 7% for FY25 while acknowledging the successful global inflation fight but warning of potential new risks. The RBI also shared a positive outlook, projecting real GDP growth at 7.2% for the upcoming fiscal year.
EURINR:
- Trading Range: 90.47 – 91.05
The Euro declined amid heightened expectations of further ECB rate cuts as inflation across the Eurozone shows signs of easing. ECB President Christine Lagarde expressed optimism that Eurozone inflation might fall back to the 2% target more quickly than anticipated. Meanwhile, the IMF downgraded its economic growth projections for Germany this year and the next, reflecting continued economic challenges.
GBPINR:
- Trading Range: 108.77 – 109.47
The British Pound dropped as investors focused on the potential impact of central bank policies and the outcome of the U.S. elections. The IMF raised its 2024 GDP growth forecast for the UK as Rachel Reeves preps the budget, while UK pay growth steadied. A further slowdown in wage growth is expected in 2025, reflecting evolving labor market conditions.
JPYINR:
- Trading Range: 54.75 – 55.73
The Japanese Yen weakened as robust U.S. economic data boosted Treasury yields and the dollar. The IMF recently cut Japan’s growth forecast but expects a rebound in 2025. Investors are keeping a close watch on Japan’s general election, with polls suggesting that the ruling Liberal Democratic Party may lose its majority, potentially influencing future policy decisions.
