Date: June 20, 2023
Place: New Delhi, India
The Indian rupee, a crucial currency in the global financial landscape, has been making waves in the currency markets with its recent performance. As we delve into the pre-market updates and expectations for June 20, 2023, it is essential to examine the rupee’s performance against four major currencies: the US dollar (USD), the Euro (EUR), the Japanese yen (JPY), and the British pound (GBP). Traders and investors keenly observe the movements of these currency pairs as they provide valuable insights into the Indian economy’s strength and global market trends.
Let us explore the events and factors influencing the rupee’s trajectory, providing a comprehensive overview of the currency’s performance on the previous day and offering insights into what lies ahead.
USDINR:
The Indian rupee displayed a resilient performance against the US dollar (USD) on the previous day. Opening at 82.01, it managed to hold its ground throughout the trading session, ultimately closing at 81.96. With a marginal decline of 0.05 points, the rupee demonstrated stability and showcased its ability to withstand external pressures. This performance reflects positive sentiments among traders and investors, highlighting the confidence in India’s economic outlook and the rupee’s position in the currency markets.
GBPINR:
The Indian rupee experienced a relatively stable day against the British pound (GBP) in the currency markets. Starting the trading session at 104.90, the rupee demonstrated resilience and closed at 104.93. With a marginal gain of 0.03 points, the rupee showcased its ability to hold its own against the pound, indicating a balanced market sentiment. The slight fluctuation highlights the cautious optimism surrounding the GBPINR currency pair, with traders and investors monitoring economic indicators and global market trends for further insights into future movements.
EURINR:
The Indian rupee showcased a steady performance against the euro (EUR) on the previous day. Opening at 89.59, it displayed resilience throughout the trading session, ultimately closing at 89.51. With a marginal decline of 0.08 points, the rupee exhibited stability against the euro, indicating a cautious market sentiment. Traders and investors closely monitored economic indicators and developments impacting the EURINR currency pair, considering factors such as inflation, monetary policy, and global market trends. The rupee’s ability to hold its ground reflects the ongoing assessments and analysis of market participants.
JPYINR:
The Indian rupee displayed strength and resilience against the Japanese yen (JPY) in the currency markets on the previous day. Opening at 57.90, it continued to exhibit its robust performance throughout the trading session, ultimately closing at 57.80. With a decrease of 0.10 points, the rupee appreciated against the yen, indicating positive market sentiments. Traders and investors observed favorable trading conditions for the JPYINR currency pair, influenced by factors such as economic indicators, monetary policies, and global market dynamics. The rupee’s performance against the yen reflects its competitiveness and the confidence of market participants in the Indian economy.
To Sum Up
USDINR is expected to remain range-bound between 81.85 and 82.10, but if the sell-off in CNH/CNY continues, it may surpass 82.10 and move towards 82.30. A breakthrough below 81.85 could test support near 81.60/75 levels. Traders can consider scalping within the range boundaries and adjust their strategies accordingly.
GBPINR is also predicted to stay within a specific range due to upcoming events: UK inflation data and the Bank of England monetary policy meeting. Speculative long positions have increased, and any disappointment from the BOE could lead to profit-taking activity. For now, the price is expected to remain within the established range of 104.75 to 105.15.
EURINR is in an uptrend, albeit with measured upward movement compared to GBPINR. It has support at 89.40/45 levels and a strong support area at 89.90/90.00 on June futures. Resistance can be found around 89.80/90.00 levels. The bias for EURINR remains slightly upward.
JPYINR is undergoing an upward correction after a period of intense selling pressure. Speculators hold a bearish stance on JPY pairs, including JPYINR, due to the accommodative monetary policy of the Bank of Japan. Verbal intervention from Japanese policymakers is possible if speculators drive JPY down further, but direct BOJ intervention is unlikely unless there is a significant decline. Resistance levels for JPYINR are at 58.25 and 58.60, while support is expected near 57.90 and 57.60 in the June futures. The prevailing bias for JPYINR remains bearish.
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