july 9, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee closed nearly unchanged as importer dollar demand weighed on the currency, even though most of its Asian peers gained. Rupee forward premiums rose, with the 1-year implied yield up 2 basis points at 1.64%, aided by a decline in U.S. bond yields. Additionally, S&P indicated that India’s rating could be upgraded within the next 24 months if the fiscal deficit falls to 4%. The trading range for USDINR for the day is 83.5-83.58.
EURINR
The euro gained, fueled by expectations of a rate cut by the Federal Reserve in September. However, ECB policymakers raised some doubts about whether the Euro Area recovery would take place as expected. The HCOB Eurozone Services PMI fell to 52.8 in June 2024 from 53.2 in the previous month. The trading range for EURINR for the day is 90.15-90.65.
GBPINR
The GBP gained as the center-left Labour Party won the parliamentary election and secured a majority, as expected. British employers anticipate slower wage growth over the coming 12 months. Investors are also anticipating a rate cut in August following the Bank of England’s decision to keep interest rates steady in June. The trading range for GBPINR for the day is 106.37-106.93.
JPYINR
The JPY appreciated, benefiting mainly from a decline in the dollar amid soft US economic data. Reserve assets in Japan fell slightly to $1.231 trillion in June 2024 from $1.232 trillion in May. Additionally, household spending in Japan declined in real terms by 1.8% year-on-year in May 2024. The trading range for JPYINR for the day is 51.39-52.49.
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