October 7, 2024
New Delhi, India
Currency Market Analysis
USDINR
- Trading Range: 83.78 – 84.54
- Closing Price: 84.12
The Rupee remained flat as surging crude oil prices due to the intensifying Middle East conflict offset the impact of foreign equity outflows. India’s Services PMI was revised lower to 57.7 in September from the preliminary estimate of 58.9, indicating slightly slower growth in the services sector. Meanwhile, the Composite PMI also dropped to 58.3 in September, lower than both the flash estimate of 59.3 and August’s 60.7, suggesting a deceleration in overall business activity.
EURINR
- Trading Range: 92.65 – 92.93
- Closing Price: 92.80
The Euro dropped as the ongoing conflict in the Middle East weighed on market sentiment. Investors also awaited the highly anticipated US jobs report. In contrast, Eurozone construction data showed slight improvements, with the Construction PMI rising to 42.1 in September from 41.4 in the previous two months. Germany’s Construction PMI also improved to 41.7, though the sector remains in contraction for the 30th consecutive month, reflecting continued challenges in the construction industry.
GBPINR
- Trading Range: 110.08 – 110.98
- Closing Price: 110.65
The British Pound gained on news that the UK construction sector grew at its fastest pace in over two years in September, reflecting robust recovery momentum. Bank of England (BoE) Chief Economist Huw Pill suggested that the central bank should adopt a gradual approach to cutting interest rates. However, Governor Andrew Bailey hinted at the possibility of more aggressive rate cuts, which has created some uncertainty in the market regarding the BoE’s future monetary policy stance.
JPYINR
- Trading Range: 57.49 – 57.75
- Closing Price: 57.62
The Japanese Yen gained on short covering after earlier pressure, following comments from top Japanese officials who tempered expectations of further rate hikes. The au Jibun Bank Japan Manufacturing PMI was revised slightly higher to 49.7 in September, up from the preliminary figure of 49.6, but still indicates contraction in the manufacturing sector. Prime Minister Shigeru Ishiba reiterated that further rate hikes would be premature given current economic conditions.
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