August 2, 2024
New Delhi, India
Daily Market Analysis
USDINR
The rupee remained within the trading range of 83.73-83.85, pressured by outflows from local equities, volatility in the yuan, and persistent dollar bids. Despite this, the Federal Reserve signaled its first rate cut in September. Interventions from the Reserve Bank of India (RBI) ensured that volatility remained subdued.
EURINR
The euro steadied within the trading range of 90.61-91.03 as fresh key economic data did little to change traders’ bets for an ECB rate cut in September. Germany’s seasonally adjusted jobless rate stood at 6% in July 2024, the highest since May 2021. Additionally, the Eurozone economy expanded at a faster-than-expected 0.3% in Q2.
GBPINR
The British pound fell within the trading range of 107.37-107.81 in anticipation of the Bank of England’s upcoming monetary policy decision. Traders raised BoE rate-cut bets despite stubborn UK service inflation. Investors also see the Federal Reserve delivering dovish interest rate guidance.
JPYINR
The Japanese yen gained within the trading range of 54-56.86 as the Bank of Japan raised its policy rate to 0.25%. The central bank announced plans to reduce its monthly bond purchases to about 3 trillion yen per month in the first quarter of 2026. Japan’s retail sales growth hit a four-month high in June.
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