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USDINR

Observations

USDINR trading range for the day is 83.22-83.44.

Rupee strengthened after increased bets of a Fed rate cut by September eased.

Fed officials pressured Asian currencies as they dented hopes of rate cuts by the U.S. central bank this year.

Dollar-rupee forward premiums slipped with the 1-year implied yield down 1 basis point (bp) at 1.70%.

SELL USDINR MAY @ 83.4 SL 83.5 TGT 83.3-83.2.

EURINR

Observations

EURINR trading range for the day is 90.27-90.69.

Euro remained in range amid a lack of fresh market catalysts, while investors continued to assess the outlook for US interest rates.

Producer prices in Germany declined by 3.3% year-on-year in April 2024.

The ZEW Indicator of Economic Sentiment for Germany increased to 47.1 in May 2024, the highest since February 2022

BUY EURINR MAY @ 90..50 SL 90.7 TGT 90.3-90.1.

GBPINR

Observation

GBP surged due to a weaker dollar after softer US inflation data reinforced the view that the Fed will deliver its first rate cut in September.

GBP gains as expectations of Fed rate cut grew due to softer US consumer inflation and stagnant retail sales.

April's annual inflation likely dipped to 2.1%, the lowest since June 2021 and close to the Bank of England's 2% target.

The Bank of England held interest rates steady in May, two members suggested a decrease, signaling a shift towards lower borrowing costs.

SELL GBPINR MAY @ 106 SL 106.3 TGT 105.7-105.5.

JPYINR

Observations 

JPYINR trading range for the day is 53.07-54.07.

JPY weakened as the dollar strengthened after Fed official offered a more hawkish outlook on US interest rates than markets anticipated.

Pressure also seen amid renewed pressure after BOJ left its bond buying amounts the same in its latest operation

Japanese Finance Minister Shunichi Suzuki voiced worries regarding the adverse effects of the weak Japanese Yen.

SELL JPYINR MAY @ 53.75 SL 53.95 TGT 53.55-53.35.