May 8, 2023
New Delhi, India
USDINR: Rupee Slips Amid Dollar Demand
The last traded price of USDINR was 83.47.
The Indian Rupee (INR) faced downward pressure against the US Dollar (USD), with a trading range of 83.43-83.71. This decline was primarily fueled by heightened dollar demand from local oil companies and importers. Additionally, the revision of the HSBC India Services PMI to 60.8 in April 2024, down from the preliminary estimate of 61.7, added to the rupee’s woes. Despite the Federal Reserve’s reassurance on steady interest rates, concerns linger about inflation, influencing market sentiment.
EURINR: Euro Strengthens on Rate Expectations
The last traded price of EURINR was 89.74.
Conversely, the Euro (EUR) showcased strength against the Indian Rupee (EURINR), with a trading range of 89.39-90.13. Traders’ revised expectations for interest rate cuts boosted confidence in the Eurozone economy. Notably, Eurozone business activity surged to its fastest pace in nearly a year, while the German services sector picked up momentum in April, as indicated by the PMI data.
GBPINR: Pound Sterling Rises Amid Rate Cut Speculations
The last traded price of GBPINR was 104.34.
The British Pound Sterling (GBP) gained ground against the Indian Rupee (GBPINR), with a trading range of 104.45-105.07. Traders adjusted their rate cut expectations for 2024, anticipating the first cut in August rather than September. While the Bank of England (BoE) is likely to maintain rates next week, Governor Andrew Bailey expressed optimism regarding British inflation meeting the 2% target, boosting investor confidence in the pound.
JPYINR: Yen Volatility Amid Holiday
The last traded price of JPYINR was 53.92.
The Japanese Yen (JPY) experienced volatility against the Indian Rupee (JPYINR), with a trading range of 54-54.54. Despite reduced investor activity during a public holiday, the yen depreciated, underscoring intervention risks. US Treasury Secretary advised caution against currency intervention by Japanese authorities, highlighting market concerns. Meanwhile, the Bank of Japan (BOJ) maintained ultra-low interest rates amidst elevated borrowing costs abroad.
In summary, the Indian Rupee witnessed varied movements against major currencies, influenced by factors such as dollar demand, interest rate expectations, economic data revisions, and central bank policies. Traders remain vigilant amid evolving market dynamics for insights into future currency trends.
Disclaimer:
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