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Rupee strengthened as benefited from the weakness in the U.S. dollar

Published 16-09-2024, 08:59 am
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# USDINR trading range for the day is 83.85-84.03.
# Rupee strengthened as benefited from the weakness in the U.S. dollar as the odds of an outsized Fed rate cut next week rose.
# The chances of a 50-basis point rate cut by the Fed rose to 43%, up from 14% a day earlier
# Dollar-rupee forward premiums benefited from the decline, with the one-year implied yield rising 5 bps to 2.28%, its highest level in 16 months.

# EURINR trading range for the day is 92.74-93.32.
# Euro edged up as traders digest the latest monetary policy decision from the ECB.
# The central bank lowered borrowing costs as anticipated, saying recent inflation data have come in broadly as expected.
# Euro zone inflation going in the right direction, says ECB's Nagel

# GBPINR trading range for the day is 109.27-110.89.
# GBP gains as dollar dropped amid growing expectations that the Fed could act more aggressively when it starts cutting interest rates.
# Expectations that the BoE will cut rates less than the Fed also contribute to the positive move.
# Bulls might now opt to move to the sidelines ahead of the Fed and the BoE meetings next week.

# JPYINR trading range for the day is 59.22-59.8.
# JPY climbed amid a firm hawkish outlook on the Bank of Japan monetary policy.
# BOJ Tamura said that the central bank must push up short-term rates to at least around 1% through fiscal 2026 to stably achieve the 2% inflation target.
# Fitch revised its forecasts for Japan’s policy rate, now seeing it at 0.5% by the end of 2024, 0.75% in 2025, and 1% by the end of 2026.

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