Rupee vs Dollar: Currency Market Analysis Against Major Pairs

Indian Rupee

November 8, 2023

New Delhi, India


USDINR traded within a range of ₹83.21 to ₹83.28 in the previous session, closing at ₹83.2650, marking a 0.06% increase. The total traded volume stood at 126,736 lots. The Rupee closed stronger but underperformed its Asian peers due to increased U.S. dollar demand from local oil companies and importers. Meanwhile, U.S. Treasury yields and the dollar retreated following signs of a cooling labor market in the U.S., thereby reducing the probability of a Fed rate hike at the December meeting to 7%, down from 20% a week earlier, as per FEDWATCH.


Regarding GBPINR, the currency pair traded between ₹102.30 and ₹102.78, closing at ₹102.3125 yesterday, depicting a decrease of -0.97%. The total traded volume amounted to 11,813 lots. The Pound Sterling gained ground as data suggesting a slowdown in the U.S. labor market indicated that the Federal Reserve might have reached the end of its tightening cycle. The S&P Global/CIPS UK Construction PMI improved to 45.6 in October 2023 from the previous month, yet the UK central bank issued a warning about the nation’s challenging economic outlook.


For EURINR, the pair traded in a range between ₹88.94 and ₹89.22, closing at ₹88.9450, reflecting a decrease of -0.57%. The total traded volume accounted for 7,748 lots. The Euro strengthened on indications of a potential conclusion to monetary policy tightening by major central banks. Germany saw an unexpected rise of 0.2% in factory orders for September 2023. The HCOB Spain Composite PMI remained unchanged at 50 for October.


In the JPYINR segment, the trading range varied between ₹55.37 and ₹55.51, with a closing price of ₹55.4550, representing a decrease of -0.39%. The total traded volume for JPYINR was 632 lots. The Japanese Yen gained strength as the dollar weakened due to weak U.S. job data, reducing the probability of a Fed rate hike. Japan hasn’t achieved sustainable and stable price stability alongside wage increases, and the au Jibun Bank Japan Composite PMI, while revised upward to 50.5, still fell below September’s final figure of 52.1.