July 16, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The USDINR trading range for the day is 83.48-83.62. The rupee’s gain came after U.S. inflation data showed a softer reading, raising hopes for Federal Reserve rate cuts. This pushed the odds of a September rate cut by the Fed above 90%. Additionally, dollar-rupee forward premiums increased, with the 1-year implied yield up 2 basis points at 1.68%.
EURINR
The EURINR trading range for the day is 90.57-91.21. The euro surged as the dollar weakened following the U.S. inflation data. Concerns over political risks in France eased after the parliamentary elections, and Germany’s wholesale prices dropped by 0.6% year-on-year in June 2024.
GBPINR
The GBPINR trading range for the day is 107.47-108.45. The GBP surged as the US dollar weakened sharply after the inflation report showed annual inflation slowed more than expected. Stronger-than-expected GDP data in the UK reduced the chances of an August rate cut, and BoE chief economist Huw Pill mentioned that the central bank is moving closer to cutting interest rates.
JPYINR
The JPYINR trading range for the day is 51.61-52.89. The JPY jumped after U.S. inflation data showed a significant cooling in the previous month. Japan’s top FX diplomat stated that authorities would take necessary action on the yen. Additionally, Japan’s industrial output growth was revised higher.