Once again, the Indian Rupee spot appreciated by 0.2 percent, making a fresh 16 month high in yesterday’s trading session. Reason behind this prolonged surge could be attributed to the massive win by BJP in the recent state elections which have infused positive sentiments in the markets; leading to surge in foreign inflows. Furthermore, traders are still discounting the dovish stance made by the US Fed Chair who indicated that the central bank was unlikely to speed up monetary tightening. Today, USDINR spot is likely to depreciate owing to possible RBI intervention via state-banks.
Yesterday, the Euro currency spot traded higher by 0.01 percent (EURUSD) in the international markets however declined by 0.20 percent (EURINR) in the domestic market; all due to rupee appreciation. In the recent Euro-group meetings, the EU finance ministers discussed about budget plans of member states for this year. They also spoke about Greece’s debt problems and bailout loan on which there is so far no progress. Due to all the above factors, EURINR spot is expected to trade lower.
Sterling pound traded lower by 0.29 percent (GBPUSD) and 0.49 percent (GBPINR) in yesterday’s trading session after a spokesperson from UK Prime Minister’s team confirmed the timing of triggering Article 50 i.e. on 29th March 2017. Moreover, the EU officials have asked for £52billion to cover their losses which they are likely to suffer post Brexit. The huge sum includes money for Eurocrat’s pensions as Brussels scramble to rinse as much money as possible from the upcoming negotiations. Due to all the above factors, GBPINR spot is likely to trade lower today.
USDJPY spot appreciated by 0.13 percent while JPYINR spot fell by 0.05 percent yesterday owing to rising fears of protectionist policies after the G20 financial leaders' decided to drop a pledge to keep global trade free and open. Today, JPYINR spot is likely to surge on rising fears of Brexit negotiations after a member of the government confirmed on the timing.
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