October 19, 2023
New Delhi, India
USDINR closed at 83.28 in its last session, with a daily trading range of 83.29-83.22. The Indian Rupee remained stable as traders searched for catalysts to escape the tight range. However, Icra predicts a widening fiscal deficit in FY24, with a 29% increase in capex for 13 states. Today, market participants will closely watch US Jobless Claims, the Philly Fed index, and a speech by Federal Reserve Chair Powell.
GBPINR closed at 101.54 for the previous session, with a trading range of 101.71-101.34. The British Pound (GBP) dipped as data revealed a slight moderation in regular pay growth in the UK, standing at 7.8%. On a positive note, weekly earnings increased by 8.1% YoY to GBP 661 per week in the three months up to August 2023. Bank of England Governor Andrew Bailey expressed bewilderment at the persistent strength of pay growth in the UK.
EURINR wrapped up the previous session at 87.99, within a trading range of 88.24-87.94. The Euro remained range-bound as investors closely monitored Middle East developments. The ZEW Indicator of Economic Sentiment for Germany surged by 10.3 points to -1.1 in October 2023, and the ZEW Indicator for the Euro Area bounced back to 2.3 from -8.9 in the previous month. Eurozone’s Harmonized Index of Consumer Prices (HICP) for September stood at 0.3%. ECB President Christine Lagarde noted robust underlying inflation and historically high wage growth.
JPYINR concluded the last session at 55.79, with a trading range between 55.80-55.71. Traders remained alert for any signals of intervention by Japanese authorities. In September 2023, Japan’s producer prices increased by 2.0% YoY, and the value of loans in Japan rose by 2.9% YoY during the same month.