Rupee vs Dollar: The Range Bound Fight

CurrencyVeda’s Analysis Report on Global Markets

November 1, 2023

New Delhi, India


In the previous trading session, the USDINR saw a slight dip, closing at 83.2600 (-0.01%), with the day’s trading range oscillating between ₹83.28 and 83.25. The rupee remained relatively steady as the month-end demand for the U.S. dollar from importers was offset by the central bank’s consistent defense of the local currency. Elevated U.S. Treasury yields, along with prevailing weak market sentiment, led to substantial outflows from Indian equities, creating added pressure on the rupee. Additionally, India’s foreign exchange reserves dropped by $2.36 billion to $583.5 billion.


Meanwhile, EURINR traded at 88.7400, marking a rise of 0.76%, with a trading range of 87.91 to 88.43. The Euro gained ground as investors awaited the latest inflation data from Germany and Spain, alongside preliminary GDP figures. Investors exhibited caution ahead of significant monetary policy decisions scheduled later in the week from major central banks.


The GBPINR ended the session at 101.4325, showcasing a 0.48% increase, within a trading range of 100.68 to 101.34. Sterling stabilized, with the Bank of England expected to maintain its interest rates. The UK experienced a slowdown in consumer credit growth for September. CFTC data revealed an increase in net short positions for GBP.


Finally, JPYINR closed at 55.3325, reflecting a decrease of -0.58%, with a day’s range of ₹55.63 to 55.28. The Japanese yen maintained its stability as traders anticipated the Bank of Japan’s forthcoming policy decision. Tokyo’s core inflation surpassed expectations in October, adding pressure on the BOJ. The Japan Manufacturing PMI for October remained unchanged