September 24, 2024
New Delhi, India
USDINR
Trading Range: 83.41-83.65
The Indian Rupee ended flat, pulling back from a near three-month high due to increased dollar demand from local oil companies. Despite this pressure, dollar-rupee forward premiums rose, with the 1-year implied yield touching a 17-month peak of 2.38%, reflecting positive forward market sentiment. Meanwhile, India’s Manufacturing PMI fell to 56.7 in September, down from 57.5 in the previous month, signaling a modest deceleration in the manufacturing sector’s growth.
Euro Drops on Weak European PMI Data
EURINR
Trading Range: 92.35-93.65
The Euro depreciated following disappointing flash PMIs across Europe, with worse-than-expected results from both France and Germany. The S&P Global France Manufacturing PMI rose marginally to 44 in September 2024 from 43.9 in August, but still indicated a contraction in the sector, reflecting weak industrial activity across the region.
Also Read: India’s Business Activity Growth Slows in September: HSBC Flash PMI Report
British Pound Falls on Weaker UK PMI
GBPINR
Trading Range: 110.49-111.55
The British Pound dropped as the UK’s preliminary S&P Global PMI came in lower than expected, highlighting ongoing economic struggles. Traders now expect one more interest rate cut from the Bank of England before the end of the year. Meanwhile, the US Dollar regained strength amid a generally negative market mood, further weighing on the Pound.
Japanese Yen Steadies Amid Economic Concerns
JPYINR
Trading Range: 57.69-58.61
The Japanese Yen remained stable as concerns grew that the Bank of Japan is not in a rush to raise interest rates. Governor Kazuo Ueda’s acknowledgment of “some weakness” in Japan’s economy marked a more dovish stance. In July 2024, Japan’s core machinery orders fell by 0.1% month-on-month to 874.9 billion yen, signaling tepid industrial demand in the country.
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