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USDINR

Observation

USDINR trading range for the day is 83.85-84.03.

Rupee strengthened as benefited from the weakness in the U.S. dollar as the odds of an outsized Fed rate cut next week rose.

The chances of a 50-basis point rate cut by the Fed rose to 43%, up from 14% a day earlier

Dollar-rupee forward premiums benefited from the decline, with the one-year implied yield rising 5 bps to 2.28%, its highest level in 16 months.

SELL USDINR SEP @ 83.95 SL 84.05 TGT 83.85-83.75.

EURINR

Observation

EURINR trading range for the day is 92.74-93.32.

Euro edged up as traders digest the latest monetary policy decision from the ECB.

The central bank lowered borrowing costs as anticipated, saying recent inflation data have come in broadly as expected.

Euro zone inflation going in right direction, says ECB's Nagel

SELL EURINR SEP @ 93.2 SL 93.4 TGT 93-92.8.

GBPINR

Observation

GBPINR trading range for the day is 109.27-110.89.

GBP gains as dollar dropped amid growing expectations that Fed could act more aggressively when it starts cutting interest rates.

Expectations that the BoE will cut rates less than the Fed also contribute to the positive move.

Bulls might now opt to move to the sidelines ahead of the Fed and the BoE meetings next week.

SELL GBPINR SEP @ 110.4 SL 110.7 TGT 110.1-109.9.

JPYINR

Observation

JPYINR trading range for the day is 59.22-59.8.

JPY climbed amid a firm hawkish outlook on Bank of Japan monetary policy.

BOJ Tamura said that the central bank must push up short-term rates to at least around 1% through fiscal 2026 to stably achieve the 2% inflation target.

Fitch revised its forecasts for Japan’s policy rate, now seeing it at 0.5% by the end of 2024, 0.75% in 2025 and 1% by end-2026.

BUY JPYINR SEP @ 59.5 SL 59.3 TGT 59.7-59.9.