Indian Rupee to US Dollar (INR/USD) Exchange Rate Trends at Nine-Month Low
Before the release of the US Consumer Price Index, the Indian Rupee to US Dollar (INR/USD) exchange rate was trending in the region of a nine-month low.
A number of factors contributed to the Rupee’s slide, including the slightly more hawkish Federal Open Market Committee meeting minutes, a stronger US Dollar, fluctuating commodity prices and unimpressive domestic fundamentals.
Indian stocks also retreated on Thursday as concerns that the softer Rupee could prevent the Reserve Bank of India cutting interest rates took a toll.
In the opinion of industry expert Deven Choksey; ‘The Rupee could be a spoilsport. If the Rupee falls, even for a brief period, the RBI may stay away from a rate cut for the time being, breaking the market’s rhythm.’
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a low of 61.9200
Pound Sterling to Euro (GBP/EUR) Exchange Rate Rallies on Sales Figures
The Pound Sterling to Euro (GBP/EUR) exchange rate managed to remain trading above 1.25 on Thursday thanks to an upbeat retail sales report for the UK.
The stronger-than-envisaged rise in sales gave the Pound a boost.
Further support for the GBP/EUR exchange rate came in the form of disappointing manufacturing and services figures for the Eurozone and its largest economies.
If the Eurozone’s Consumer Confidence index also slides, the GBP/EUR exchange rate could test fresh weekly highs.
The GBP/EUR exchange rate was trending in the region of 1.2513
US Dollar to Pound Sterling (USD/GBP) Exchange Rate Steady after FOMC
Before the publication of US inflation data, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in a slightly softer position as the Pound was supported by unexpectedly strong UK retail sales figures.
The US Dollar had previously been boosted by the Federal Open Market Committee meeting minutes.
The minutes revealed that policymakers were considering adjusting their language on the subject of interest rate increases.
However, if today’s Consumer Price Index shows a slowing in price gains (as it is forecast to do) it would push back Fed rate hike expectations and could inspire US Dollar losses.
The US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6372
Japanese Yen to US Dollar (JPY/USD) Exchange Rate at Seven-Year Low
With the political landscape of Japan looking uncertain and the nation back in recession, the Japanese Yen to US Dollar (JPY/USD) exchange rate weakened to a seven-year low.
The currency was on the verge of declining against the US Dollar for a sixth day as investors bet that current Prime Minister Shinzo Abe will win the snap election and step up his current stimulus programme.
In the opinion of foreign exchange expert Yuji Saito; ‘The Dollar should be supported against the Yen into elections. Should US yields start rising, a climb to 120 would be in sight.’
The US Dollar to Japanese Yen (USD/JPY) exchange rate was trading in the region of 118.0800 before the release of the US Consumer Price Index.
