July 11, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The Rupee ended marginally lower, pressured by importers’ dollar bids. Federal Reserve Chair Jerome Powell noted a better-balanced labor market and acknowledged progress in cooling inflation, slightly easing the odds of a September rate cut from 76% to 73%.
EURINR
The Euro dropped, driven by a stronger dollar following Federal Reserve Chair Jerome Powell’s testimony. Despite this, investors still expect the ECB to cut interest rates once or twice this year. The annual inflation rate in the Euro Area eased to 2.5% in June, but the core rate remained steady at 2.9%.
GBPINR
The GBP weakened after Fed Chair Powell’s cautious stance on rate cuts during his congressional testimony. The UK economy is estimated to have expanded by 0.2% after remaining unchanged in April. BOE policymaker Haskel advocated for holding interest rates at their current levels as price pressures in the job market remain firm.
JPYINR
The JPY depreciated as the dollar firmed up after Federal Reserve Chair Jerome Powell’s speech. The Bank of Japan is under pressure to normalize monetary settings more aggressively as a weak yen increases import costs, raising inflationary risks. Producer prices in Japan increased by 2.9% year-on-year in June 2024.
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