July 18, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee ended lower, pressured by a decline in the Chinese yuan and tracking losses in Asian peers. India’s merchandise exports rose to $35.2 billion in June, according to the trade ministry. Additionally, India’s retail inflation rate increased for the first time in five months in June, primarily due to a sharp spike in food prices.
EURINR
The euro gained as market hopes for an accelerated pace of rate cuts from the Fed reached a fever pitch. Concerns over political risks in France eased after the parliamentary elections. Meanwhile, Germany’s wholesale prices dropped by 0.6% year-on-year in June 2024.
GBPINR
The pound rose against the US dollar as the Fed looks set to start reducing interest rates in September. Despite a hot US PPI report, bets on a Fed rate cut remain strong. Investors are now awaiting UK inflation and employment data for fresh guidance on BoE interest rates.
JPYINR
The yen gained on suspected intervention by Japanese authorities and rallied following cooler-than-expected US inflation figures. Bank of Japan data suggests the government may have spent up to 3.57 trillion yen to prop up its currency.