July 18, 2024
New Delhi, India
USDINR
The rupee ended little changed as dollar sales from exporters and mild inflows helped curb the pressure from Asian peers. Dollar-rupee forward premiums rose, with the 1-year implied yield up 4 basis points at 1.73%, its highest since March 12. According to the trade ministry, India’s merchandise exports rose to $35.2 billion in June.
EURINR
The euro dropped on profit booking as investors prepared for the latest ECB policy decision later in the week. The ZEW Indicator of Economic Sentiment for Germany declined to 41.8 in July 2024. Additionally, the Euro Area posted a trade surplus of EUR 13.9 billion in May 2024, below market expectations.
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 dropped as the dollar found support on safe-haven bids. The Bank of Japan is expected to announce its bond purchase tapering plans and possibly raise interest rates again. The BOJ released a summary of opinions it collected in a survey of bond market participants on how the central bank should taper its huge bond purchases.
