October 10, 2023
New Delhi, India
USDINR: Remains Range Bound
The Indian Rupee (USDINR) traded in a tight range as the Reserve Bank of India (RBI) maintained its policy repo rate at 6.5% for the fourth consecutive meeting. The Rupee weakened slightly by 0.08% against the US dollar, closing at 83.29 per dollar. Despite escalating geopolitical tensions, traders anticipate RBI intervention to support the Rupee at lower levels.
The benchmark 10-year bond yield rose by 4 basis points to 7.3806%, with the bond quoted at 98.60 rupees. This increase in yields came after the RBI’s announcement of open market sales of bonds via auctions and concerns about rising oil prices.
GBPINR: Pound Sterling Retreats
The Pound Sterling to Rupee exchange rate (GBPINR) experienced a decline of 0.20%, closing at 101.3850. Investors are evaluating the possibility of the Bank of England concluding its rate-hiking cycle. Additionally, the Halifax House Price Index recorded a 4.7% YoY drop in September.
EURINR: Euro Remains Stable
The Euro (EURINR) displayed slight stability within a trading range of 87.62-87.90, while closing at 87.72 in the previous session by facing a decline of 0.14%. The Euro saw a slight increase as investors digested remarks from European Central Bank officials and US labor market data. However, concerns persist about a potential contraction in the Eurozone economy in Q3.
JPYINR: Japanese Yen Softens
Rupee stayed flat against yen, JPYINR saw a minor uptick of 0.02%, closing at 55.89. It traded in the range between 55.9175 – 55.8450. Despite weaker-than-expected US jobs data reducing the likelihood of a Fed interest rate hike, the Japanese Yen is weakening. Japan’s reserve assets decreased in September, and household spending declined by 2.5% YoY in August.