June 14, 2024
New Delhi, India
Daily Currency Market Update
USDINR
Trading Range: 83.51-83.67
The Indian Rupee closed flat, showing resilience despite the increased dollar demand from local oil companies and other importers. The Federal Reserve kept the funds rate unchanged, but its dot-plot projections indicated only a single 25 basis points rate cut this year. Meanwhile, the annual inflation rate in the US declined to 3.3% in May, slightly below April’s expectations of 3.4%.
EURINR
Trading Range: 89.8-90.06
The Euro remained stable as traders focused on political developments in France. The European Central Bank (ECB) implemented its first rate cut in five years but signaled a cautious stance on further cuts. Additionally, consumer confidence in the Euro Area improved by 0.4 points to -14.3 in May 2024, indicating a slight uptick in sentiment.
GBPINR
Trading Range: Not specified
The British Pound surged due to a weaker dollar, driven by softer US inflation data that reinforced expectations of the Federal Reserve’s first rate cut in September. However, the pound remained range-bound as new data suggested a halt in the UK’s economic recovery. The UK economy stagnated in April, aligning with forecasts, while industrial production and construction output fell more than expected. Labor data showed that wage growth remained high, but the unemployment rate unexpectedly rose to 4.4%.
JPYINR
Trading Range: 53.22-53.44
The Japanese Yen remained steady despite hotter-than-expected domestic producer inflation figures. Producer prices in Japan surged 2.4% year-on-year in May 2024, up from an upwardly revised 1.1% in April. Investors are closely watching the Bank of Japan’s upcoming policy decision, particularly regarding potential reductions in the central bank’s monthly bond purchases.
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