In the last week, the Indian Rupee spot appreciated by more than 1.5 percent owing to slump seen in the American currency after the US Fed Chair indicated that the central bank was unlikely to speed up monetary tightening. Markets across the globe were disappointed by this move as they had priced in at least four rate hikes this year instead of two. This worked in favor of the Indian Rupee which was already trading higher in recent trading session; all thanks to the massive win by BJP in the recent state elections. Due to all the above factors, USDINR spot is likely to trade higher once again in today’s trading session.
Last week, Euro currency traded higher by 0.62 percent (EURUSD) in the international markets however declined by 1.04 percent (EURINR) in the domestic market all due to rupee appreciation. The reason behind the strength of the shared currency was the win of Netherlands' centre-right Prime Minister Mark Rutte against the antiIslam, anti-EU Geert Wilders in an election that was held on 15th March’17. It was a huge relief to other EU governments facing a wave of nationalism. Furthermore, weakness in the US Dollar Index post the FOMC policy meet added to Euro’s strength. In today’s trading session, EURINR spot is expected to trade higher following the easing concerns of one European election out of three.
Sterling pound traded higher by 1.80 percent (GBPUSD) and 0.18 percent (GBPINR) in the last week after the eight out of nine policymakers from Bank of England’s Monetary Policy Committee voted to maintain the borrowing rates at 0.25 percent. Kristin Forbes, one of the nine policymakers voted in favour of rate hike on rapid surge in inflation numbers. But there were also signs that other members might consider voting for an increase. GBPINR spot is likely to trade lower today as recent surge in the currency will prompt the traders to book profits.
USDJPY spot appreciated by 1.81 percent while JPYINR spot surged by 0.15 percent in the last week as markets played safe prior to the FOMC meeting which released later in the day along with the recent crude oil update which has played negatively on the prices thereby boosting the demand for safe haven Yen. Today, JPYINR spot is likely to trade higher owing to rising protectionism in global trade arena which has fuelled cautiousness in the markets.
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