July 31, 2024
New Delhi, India
Daily Market Analysis
USDINR
The rupee steadied within the trading range of 83.74-83.88, pressured by month-end corporate dollar demand. However, likely intervention from the Reserve Bank of India helped avert further losses. Additionally, dollar-rupee forward premiums jumped, with the 1-year implied yield up 5 basis points (bps) at 1.83%.
EURINR
The euro dropped within the trading range of 90.58-91.24 after a survey showed that German business activity unexpectedly contracted in July. Eurozone business growth stalled in July, as indicated by PMI data, but lending in the eurozone rebounded as rates fell from highs.
GBPINR
The British pound fell within the trading range of 107.09-108.09 as investors increased their wagers on Bank of England rate cuts in 2024. Sentiment in the UK manufacturing sector dropped to -9 in July 2024, after rising to 9 in April. The Confederation of British Industry’s survey indicated that the total order book balance in the UK declined to -32 in July 2024 from -18 in June.
JPYINR
The Japanese yen steadied within the trading range of 54.4-54.98 amid growing speculation that the Bank of Japan will raise interest rates. Markets are betting that the central bank will lift rates by 10 basis points to 0.1%, and it is widely expected to outline its quantitative tightening plans. The index of coincident economic indicators in Japan was revised upward to 117.1 in May 2024 from a flash figure of 116.5.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
