May 9, 2023
New Delhi, India
Daily Currency Market Update
USDINR: Rupee Maintains Stability Amidst RBI Assessment
The last traded price of USDINR was 83.46.
The Indian Rupee (INR) showed resilience against the US Dollar (USD) today, with a trading range of 83.51-83.63. Market sentiment remained steady as investors assessed the Reserve Bank of India’s (RBI) hawkish outlook amidst increasing demand for Indian sovereign bonds. Moreover, India Ratings revised the country’s GDP growth estimate for FY25 upwards to 7.1%, reflecting positive economic prospects. Additionally, India’s services sector demonstrated robust growth rates, reaching the strongest levels in approximately 14 years, as indicated by PMI data.
EURINR: Euro Steadies on Fed Rate Cut Speculations
The last traded price of EURINR was 89.70.
Conversely, the Euro (EUR) stabilized against the Indian Rupee (EURINR), with a trading range of 89.69-90.07. Optimism surrounding the Federal Reserve’s potential interest rate cuts buoyed global sentiment, supporting the euro. Meanwhile, Germany’s trade surplus expanded in March 2024, albeit factory orders experienced a slight decline month-over-month.
GBPINR: Pound Sterling Retreats Ahead of BoE Decision
The last traded price of GBPINR was 104.27.
The British Pound Sterling (GBP) retreated against the Indian Rupee (GBPINR) today, with a trading range of 104.56-105.06. Market focus shifted towards the Bank of England’s (BoE) monetary policy decision, leading to cautious trading. Expectations suggest that UK interest rates will remain steady at 5.25% after Thursday’s BoE meeting, with investors anticipating a reduction in interest rates starting from August.
JPYINR: Yen Depreciates Despite Government Assurances
The last traded price of JPYINR was 53.72.
The Japanese Yen (JPY) depreciated against the Indian Rupee (JPYINR), with a trading range of 54.01-54.49. Despite reassurances from Masato Kanda about the government’s readiness to address disorderly foreign exchange movements, the yen weakened. Japan’s Services PMI and the au Jibun Bank Japan Composite PMI were revised lower in April 2024, signaling some challenges in the country’s economic recovery.
In summary, the Indian Rupee exhibited stability against major currencies amidst evaluations of the RBI’s hawkish stance and global economic trends. Traders remain vigilant as they navigate evolving market dynamics for insights into future currency movements.
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