April 19, 2023
New Delhi, India
Currency Market Analysis
USD/INR:
Trading range: 83.4-83.74
Analysis: The Indian Rupee (INR) depreciated against the US Dollar (USD) due to market speculation that the Federal Reserve would postpone rate cuts. Recent inflation data suggesting that the Fed might delay rate cuts contributed to this sentiment. The Reserve Bank of India’s intervention through state-run banks likely aimed to mitigate the Rupee’s decline.
GBP/INR:
Trading range: 103.61-104.43
Analysis: The British Pound (GBP) dropped against the Indian Rupee (INR) as investors reacted to the latest UK jobs report and the strengthened US dollar. The rise in the United Kingdom’s unemployment rate to 4.2% added to concerns about the British economy. Market expectations for more aggressive policy easing by the Bank of England (BoE) continued to exert downward pressure on the Pound.
EUR/INR:
Trading range: 88.46-89.28
Analysis: The Euro (EUR) declined against the Indian Rupee (INR) as investors remained cautious amid ongoing geopolitical tensions in the Middle East. Despite European Central Bank (ECB) official Lane’s optimistic outlook on Eurozone inflation reaching 2%, market concerns persisted. Expectations of fewer than two rate cuts by the Federal Reserve this year influenced market sentiment.
JPY/INR:
Trading range: 54.04-54.26
Analysis: The Japanese Yen (JPY) depreciated against the Indian Rupee (INR) as the divergence in monetary policy between the Federal Reserve and the Bank of Japan became more apparent. Japan’s finance minister’s close monitoring of foreign exchange (FX) movements indicates a proactive stance on currency stability. However, the sharp rise in Japan’s machinery orders alleviated concerns about domestic demand, potentially mitigating the Yen’s decline.
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