Welcome to our daily pre-market update, where we comprehensively analyze the Indian rupee’s performance in the currency markets. In this article, we will delve into the previous day’s trading session, examining the critical movements of the rupee against major currencies such as the US dollar (USD), British pound (GBP), Euro (EUR), and Japanese yen (JPY). Additionally, we will offer insights into what we can expect from the rupee in today’s trading session.
Date- September 5, 2023
Place- New Delhi, India
The USD/INR pair may see fluctuations influenced by developments in Asia, particularly in China. Ongoing concerns about China’s economic stability, driven by issues in the property market and high debt levels, could contribute to risk-off sentiment, potentially boosting the demand for the US Dollar as a safe-haven currency. Traders are keeping a keen eye on how the Chinese government manages its economy, as stimulus measures can lead to a positive response in global markets, while the absence of such support may trigger a risk-off scenario.
As we look at the pre-market data, the USD/INR pair opened slightly higher, reflecting the prevailing risk-off sentiment in Asia and weaknesses in major currencies against the US Dollar. The pair is currently trading within a range of 82.50 to 82.81. If prices break out of this range and ascend, we could see a rally towards the resistance zone at 83.05/83.15. On the downside, primary support levels to watch are approximately 82.72 and the zone around 82.55/60. Traders are advised to navigate cautiously within this range, taking into account the potential impact of Asian market dynamics on the USD/INR pair.
In today’s pre-market update for GBP/INR, market participants are paying close attention to the upcoming Monetary Policy Report (MPR) hearings scheduled for tomorrow. Bank of England (BOE) members Andrew Bailey, Jon Cunliffe, and Silvana Tenreyro are expected to testify following the release of the August MPR. The GBP/INR pair may experience volatility depending on the remarks of these BOE officials. Particularly, traders are interested in insights into how strong wage growth influences future policy decisions. Any indication of concerns about elevated inflation could reinforce expectations of interest rate hikes, potentially impacting the GBP/INR exchange rate.
GBP/INR appears to have strong support around the 103.60/80 spot zone, suggesting the possibility of buying interest at lower levels. However, the sustainability of any rebound largely depends on the BOE’s stance. Without a hawkish outlook from the BOE, GBP/INR might encounter renewed selling pressure around the 105.50 spot level. Traders are advised to navigate within the range of 103.80 to 105.50 on the spot, taking into account the potential market reactions following the BOE’s MPR hearings.
EURINR is currently range-bound with support levels at 89.35 and 89.15, along with resistance at 89.65 and 89.85 for September futures. The pair has been negatively impacted by the uptick in US Treasury yields, but the rising USDINR has provided some support. Short-term trading is expected to stay within the 89.00 to 90.00 range for September futures, with the direction influenced by Treasury yields and overall market sentiment due to a lack of significant economic data this week.
Taking a look at the pre-market data, the EUR/INR pair is trading within its current range, and its ability to breach the 1.08 level remains uncertain. Traders should closely follow developments in the Eurozone and global markets to gauge the EUR/INR pair’s direction in the coming sessions.
JPY/INR is showing a downward bias. It has support levels at 56.60 and 56.40, along with resistance at 57.05 and 57.25 for September futures. The rise in US bond yields has pushed the USD/JPY higher, and USDJPY is holding near a strong support level at 144.50. As long as September futures remain below 57.50, the prevailing bias for JPYINR is tilted towards the downside, largely influenced by the USD/JPY exchange rate and support levels.
The JPY/INR pair has shown some fluctuations. It opened at 56.4825 and reached a high of 56.5050, with a low of 56.4775. The previous close was at 56.5750, and it has an open interest of 4,384 with a change of 292 (7.14%).
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