July 15, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee ended marginally lower, pressured by importers’ dollar bids. Despite this, the currency remained in the 83.5-83.6 range. Federal Reserve Chair Jerome Powell indicated a better-balanced labor market and acknowledged progress in cooling inflation. Consequently, the likelihood of a rate cut in September slightly decreased from about 76% to 73%.
EURINR
The Euro dropped within the 90.33-90.55 range, driven by a stronger dollar following Powell’s testimony. Investors continue to anticipate one or two ECB interest rate cuts this year. The annual inflation rate in the Euro Area eased to 2.5% in June, while the core rate stayed steady at 2.9%.
GBPINR
The GBP weakened, trading between 106.74 and 107.08, after Powell’s cautious stance on rate cuts in Congress. The UK economy is estimated to have grown by 0.2% after stagnating in April. BOE policymaker Haskel suggested maintaining current interest rates due to persistent price pressures in the job market.
JPYINR
The JPY depreciated within the 51.76-51.96 range as the dollar strengthened post-Powell’s speech. The Bank of Japan faces pressure to normalize monetary policy more aggressively as a weak yen increases import costs and inflation risks. Producer prices in Japan rose by 2.9% year-on-year in June 2024.
