SELL EURINR JUN @ 111.7 SL 112 TGT 111.4-111.1. - Kedia Advisory
USDINR
SELL USDINR JUN @ 95.9 SL 96.1 TGT 95.7-95.5.
Observations
USDINR trading range for the day is 95.67-96.05.
Rupee edged lower, extending losses as sustained foreign capital outflows and broader weakness across Asian markets dampened investor sentiment.
Renewed US-Iran tensions further weighed on risk appetite, while conflicting signals on potential de-escalation kept markets on edge.
Investors are also awaiting RBI policy decision, where the central bank is widely expected to keep its benchmark interest rate unchanged at 5.25%.
EURINR
SELL EURINR JUN @ 111.7 SL 112 TGT 111.4-111.1.
Observations
EURINR trading range for the day is 111.18-111.96.
Euro steadied as investors weighed mixed signals from the Middle East conflict and prepared for the European Central Bank’s meeting next week.
Markets are now pricing in a near-certain 25-basis-point ECB rate hike at the June 11 meeting, with two or possibly three increases expected this year.
Euro-area inflation rose to 3.2% in May, its highest in over two and a half years, driven by surging energy costs tied to the war.
GBPINR
SELL GBPINR JUN @ 129 SL 129.3 TGT 128.7-127.4.
Observations
GBPINR trading range for the day is 128.38-129.44.
GBP steadied as investors remained cautious due to ongoing tensions between Iran and the US and fears that prolonged conflict could sustain high inflation.
Markets are anticipating nearly two Bank of England interest rate hikes this year, with the first increase widely expected in September.
Policymakers navigate the dual challenge of tackling rising inflation while addressing early signs of a cooling labor market.
JPYINR
SELL JPYINR JUN @ 60.1 SL 60.3 TGT 59.9-59.7.
Observations
JPYINR trading range for the day is 20.01-20.01.
JPY steadied as a potential trigger for another round of currency intervention by Japanese authorities, as renewed US-Iran tensions boosted demand for the dollar.
BOJ Governor Ueda said the central bank must discuss the pros and cons of raising interest rates if inflationary risks outweigh downside risks to the economy.
The BOJ will continue to raise rates at an "appropriate pace" if economic and price developments move in line with its baseline scenario.
