Rupee Rises Against Major Currencies, Dollar stable


September 29, 2023

New Delhi, India


USDINR closed slightly lower at 83.23, marking a minor decrease of -0.07% compared to the previous close at 83.29. The day saw a trading range of 83.1950 to 83.2675. The Indian Rupee remained relatively stable, with the Reserve Bank of India (RBI) likely intervening by selling dollars to prevent a further decline. New orders for manufactured durable goods in the US unexpectedly rose by 0.2% in August 2023, offering some support. Additionally, the Indian Finance Ministry expressed confidence in achieving a 6.5% growth rate for FY24 despite symmetric risks.


GBPINR concluded at 101.04, down -0.46% from the previous close of 101.51. The daily trading range for the Pound against the Rupee was 101.09 to 101.49. The British Pound faced headwinds as investors remained cautious while assessing the global economic outlook, inflation, and interest rates. Pressure also arose from the Bank of England’s decision to pause its rate-hike cycle. UK policymakers are expected to maintain the Bank Rate at 5.25% in November, given signs of slowing inflation and a loosening labor market.


EURINR closed at 87.78, down -0.56% from the previous close of 88.2750. The trading range for the Euro against the Rupee was 87.76 to 88.44. The Euro remained under pressure due to growing recession fears, and German business morale declined slightly in September for the fifth consecutive month. European Central Bank (ECB) President Christine Lagarde mentioned that the ECB’s record-high deposit rate could contribute to cutting inflation to 2%.


JPYINR closed at 55.79, marking a decline of -0.38% from the previous close of 56.01. The trading range for the Japanese Yen against the Rupee was 56.09 to 56.43. The Japanese Yen weakened following the Bank of Japan’s (BOJ) decision to maintain ultra-low interest rates. While the BOJ agreed to keep rates low, there was division regarding the timing of an exit from this policy, as revealed in the July meeting minutes. Japan’s index of coincident economic indicators was revised lower to 114.2 in July 2023.