USDINR spot appreciated by 0.20 percent yesterday as markets still cheer BJP’s massive victory in the major state election which has led to positive sentiments in the Indian markets. BJP party with its coalition partners won 325 seats against 403 seats in member assembly of Uttar Pradesh thereby increasing the chances of Modi’s win in general elections of 2019. This encroachment will help BJP to push reform agenda in the upper house of parliament, where the party currently has a minority. Both Sensex and Nifty also traded in green. Moreover, the surge in inflows of approximately Rs 10969 crores in Mar’17 added to the strength. In today’s trading session, USDINR spot is expected to trade sideways to positive in spite of the indication of three more rate hikes by the US Fed in yesterday’s FOMC meeting
Euro currency traded higher by 1.2 percent (GBPUSD) and 0.24 percent (GBPINR) yesterday owing to easing concerns with respect to Dutch elections which led to fall in Euro Gov bond yields. Polls indicated the win of Prime Minister Mark Rutte's centre-right VVD party over the PVV (Party for Freedom) of anti-Islam, anti-EU firebrand Geert Wilders. The results will be out today. 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 owing to easing concerns of Dutch Elections.
Sterling pound traded higher by 1.13 percent (GBPUSD) and 0.94 percent (GBPINR) yesterday as markets rejoiced the robust release of economic datasets form the nation that came better than the expected levels despite Brexit concerns. Unemployment rate fell to 4.7 percent from 4.8 percent. Due to all the above reasons, GBPINR spot is likely to trade higher as markets rejoice the robust release of economic datasets from the nation.
USDJPY spot appreciated by 1.22 percent while JPYINR spot surged by 0.99 percent yesterday 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 fall as markets discount today’s BoJ monetary policy meeting where the policymakers kept the interest rates unchanged.
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