June 24, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
Trading Range: 83.36-83.82
The Indian Rupee weakened, pressured by likely outflows and strong dollar demand from local importers. Markets are continuing to assess the extent to which the Reserve Bank of India (RBI) is willing to support the currency. In a positive development, Fitch has raised its FY25 India GDP growth forecast to 7.2 percent, highlighting robust economic prospects.
EURINR
Trading Range: 89.34-89.86
The Euro remained within its range as worries about Eurozone political uncertainty continued to undermine the currency. In Germany, producer prices dropped by 2.2% year-on-year in May 2024, which was softer than the 3.3% decline in the prior month. Despite recent weaker US Retail Sales data, the Fed’s wait-and-see mode might boost the Greenback.
GBPINR
Trading Range: 105.94-106.34
The British Pound faced pressure after the Bank of England (BoE) left the key bank rate steady at 5.25%, as expected. BoE Governor Bailey stated that it was “good news” that inflation was back at its 2% target, but it was too soon to cut rates. British inflation returned to its 2% target for the first time in nearly three years in May, indicating a potential stabilization of the economy.
JPYINR
Trading Range: 52.82-53.14
The Japanese Yen weakened as investors turned cautious ahead of Japan’s May inflation data. Bank of Japan (BoJ) Governor told the Japanese parliament that they could raise interest rates again at the July meeting depending on upcoming economic data. Japan’s Finance Minister also vowed to monitor the impact of China’s excess capacity on the economy, highlighting external economic influences.
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