October 25, 2023

New Delhi, India

Rupee vs Dollar: Currency Market Analysis

USDINR

The Indian Rupee (INR) closed at 83.17 in the previous session, trading in a range between 82.95 and 83.29. Federal Reserve Chair Powell attributed the yield rise to a robust economy, term premiums, and quantitative tightening. India’s central bank plans open market sales of bonds once government spending picks up and durable liquidity surplus improves.

GBPINR

GBPINR closed at 101.18 in the last session, and its trading range for the day is 100.34-101.3. The British Pound (GBP) weakened amid concerns about rising bond yields and global war tensions. Retail sales in the UK declined by 0.9% month-over-month in September 2023, reversing a 0.4% increase in August. The GfK Consumer Confidence indicator in the United Kingdom fell sharply to -30 in October 2023 from -21 in September.

EURINR

EURINR closed at 88.23 in the last session, with a trading range of 87.71-88.27. The Euro steadied as US Fed Powell noted that inflation remains high and might require lower economic growth. Producer prices in Germany saw a significant year-on-year decline of 14.7% in September 2023. The eurozone’s financial stability is fragile due to higher rates, stagnant growth, and a real estate downturn.

JPYINR

JPYINR closed at 55.57 in the last session, with a trading range for the day at 55.4-55.72. The Japanese Yen (JPY) remained weak as the Bank of Japan continued its commitment to an ultra-easy monetary policy. The annual inflation rate in Japan fell to 3.0% in September 2023 from 3.2% in the prior month, while the core consumer price index in Japan rose by 2.8% in September 2023 compared to the previous year.