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USDINR

Observations

USDINR trading range for the day is 83.5-83.88.

Rupee hit a two-month high after the Federal Reserve delivered a 50 basis points interest rate cut.

Fed Powell said was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation has eased.

Dollar-rupee forward premiums rose with the 1-year implied yield touching 2.33%, its highest level since April last year.

SELL USDINR SEP @ 83.7 SL 83.8 TGT 83.6-83.52.

EURINR

Observations

EURINR trading range for the day is 92.78-93.88.

Euro appreciated after the Federal Reserve lowered interest rates by a jumbo 50bps.

The current account surplus in the Euro Area widened sharply to €48 billion in July 2024 from €25.5 billion a year earlier.

Annual inflation rate in the Eurozone eased to 2.2% in August 2024, the lowest since July 2021

SELL EURINR SEP @ 93.45 SL 93.65 TGT 93.2-93.

GBPINR

Observations

GBPINR trading range for the day is 110.16-111.66.

GBP gains after the Bank of England left interest rates steady at 5.5%

Annual inflation rate in the UK steadied at 2.2% in August 2024, the same as in July.

Traders now parse about 42bps of rate cuts by the central bank by the year-end, below 52bps before the decision.

SELL GBPINR SEP @ 111.2 SL 111.5 TGT 110.9-110.7.

JPYINR

Observations

JPYINR trading range for the day is 58.16-59.22.

JPY fell even after the US Federal Reserve delivered a supersized half-percentage point interest rate cut.

Fed Powell said that they are not in a rush to ease policy and that half-percentage point cuts are not the “new pace.”

Bank of Japan is widely expected to keep policy unchanged on Friday but will likely signal further rate hikes.

SELL JPYINR SEP @ 58.8 SL 59 TGT 58.6-58.4.