May 29, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
- Trading Range: 83.20 – 83.10
- Closing Price: 83.16
- The Indian Rupee strengthened due to a robust fiscal position and intervention by the Reserve Bank of India (RBI). The RBI’s efforts to support the rupee have led to a record high in forex reserves. Additionally, India’s PMIs remain above the 60 threshold, and GDP is set to expand over 6% for the fifth consecutive quarter, signaling strong economic performance.
EURINR
- Trading Range: 89.59 – 90.22
- Closing Price: 90.27
- The Euro rose as traders adjusted their interest rate cut expectations, with investors now predicting an 88% chance of cuts. PMI readings indicated that private sector activity grew the most in a year in May. Furthermore, Germany’s economy expanded by 0.2% quarter-on-quarter in the three months to March 2024, showing resilience in the Eurozone’s largest economy.
GBPINR
- Trading Range: 106.48 – 106.07
- Closing Price: 106.11
- The British Pound surged initially due to a weaker dollar after softer US inflation data reinforced the view that the Fed will deliver its first rate cut in September. However, the GBP steadied as traders digested key economic data and its impact on the monetary policy outlook. UK retail sales fell by 2.3% last month, marking the most significant drop so far this year and much worse than forecast. Although UK inflation neared the Bank of England’s target in April, it did not slow as much as expected.
JPYINR
- Trading Range: 53.12 – 52.91
- Closing Price: 52.91
- The Japanese Yen steadied as investors digested the latest remarks from Bank of Japan (BoJ) officials. BoJ’s Shinichi Uchida stated that the end of the battle against deflation was in sight, with wages likely to continue increasing. The index of coincident economic indicators in Japan was revised lower to 113.6 in April 2024 from a flash reading of 113.9, reflecting mixed economic signals.
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