Dollar hit a three month high, USDINR, EURINR, GBPINR, JPYINR Review

March 1, 2023

New Delhi, India

USDINR

The last traded price of USDINR was 82.8650 down by -0.08%. The pair traded within a range of 82.91 to 83.05, The Rupee emerged as the second-best performing currency in Asia in February, posting a monthly gain of 0.2% for the third consecutive month. Despite the global strength of the US Dollar, the Rupee has shown resilience by trading in a narrow range. Despite the US economy expanding by an annualized 3.2% in Q4 2023, slightly below the advance estimate, investors remained cautious, reflecting a decreased likelihood of a rate cut at the Fed’s June policy meeting.

EURINR

The last traded price of EURINR was 89.6900 down by -0.26%. EURINR saw a trading range of 89.59 to 90.13. The Euro’s upward momentum faced resistance following the release of US core-PCE data, which met market consensus. Euro zone lending stagnated in January, according to the European Central Bank (ECB), with officials agreeing that it was premature to discuss interest rate cuts, impacting the Euro’s performance.

GBPINR

The last traded price of GBPINR was 104.7400 down by -0.26%.  GBPINR traded between 104.59 and 105.39, The British Pound experienced a minor monthly decline against the Dollar in February, while GBPINR remained within a narrow range of 104 – 106.00. Market attention is focused on the upcoming UK budget announcement. Bank of England’s Bailey observed signs of an upturn in the UK economy, although the futures market indicated expectations of a rate cut in August, with a slim chance in June.

JPYINR

The last traded price of JPYINR was 55.2375 down by -0.24%. JPYINR had a trading range of 55.27 to 55.55, with the Japanese Yen dropping amid disappointing economic data, leading the country into a technical recession. BOJ’s Shimizu expressed concerns about achieving the inflation target, while the index of coincident economic indicators in Japan was revised downward in December 2023, further impacting the Yen’s performance.