August 1, 2024
New Delhi, India
Daily Market Analysis
USDINR
The rupee was little changed within the trading range of 83.77-83.83, supported by mild dollar sales from state-run banks. The rise in forward premiums comes after the 1-year yield lingered in a 15 basis points (bps) range in the April-June period. Meanwhile, India’s forex reserves jumped to a new record high of $670.86 billion.
EURINR
The euro steadied within the trading range of 90.56-90.96 as traders awaited key economic data to reassess their predictions for an interest rate cut by the ECB. Notably, eurozone consumers stopped lowering inflation expectations in June. Preliminary Q2 GDP growth and inflation figures for the Eurozone, Germany, France, Italy, and Spain will provide an update on the economic performance.
GBPINR
The British pound steadied within the trading range of 107.47-107.79 in anticipation of the Bank of England’s upcoming monetary policy decision on August 1st. Sentiment in the UK manufacturing sector fell to -9 in July 2024, after rising to 9 in April for the first time in nearly three years. Nearly 50% of traders bet the BoE will begin its cutting cycle in August and lower the key interest rate by 25 bps.
JPYINR
The Japanese yen dropped within the trading range of 53.85-55.03 as the Bank of Japan kicked off its two-day monetary policy meeting. Markets expected the central bank to lift rates by 10 basis points to 0.1% and trim its bond purchases. Meanwhile, Japan’s unemployment rate unexpectedly fell to 2.5% in June.
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