Currency Fundamental Reports

Yesterday, Sterling Pound recovered and moved higher as the recent economic datasets from the nation are allowing the traders to reassess last week’s market moves, particularly the BoE’s dovish policy, which has given some strength to the Pound.

Yesterday, Sterling Pound traded lower as markets are still discounting the recent BoE policy where two of the Bank of England’s most ardent hawks withdrew their support for interest rate hikes

In the last week, the Indian Rupee weakened by 0.66 percent on account of probable demand for year-end dollars by importers and banks.

Last week, the Euro currency traded lower as weaker economic growth and a faster pace of deflation in the European Union could likely force the European Central Bank to cut rates more aggressively than the Federal Reserve.

2024 looks quite optimistic for Indian markets. The US treasury yields, and the US Dollar Index have come down after the Federal Reserve dropped hint to start rate cut by March 2024, which means high interest rate regime is finally bidding farewell.

Yesterday, the Euro currency plunged sharply as weaker economic growth and a faster pace of deflation in the European Union could likely force the European Central Bank to cut rates more aggressively than the Federal Reserve.

Today, the Indian Rupee is likely to appreciate as local equities move higher after the US Federal Reserve officials maintained their outlook for three quarter-point rate cuts this year but forecast fewer cuts than before in 2025 following a recent uptick in inflation.

Yesterday, the Indian Rupee weakened because of bullish US Dollar Index and fall in local equities. A recent slate of worrying inflation reports has led to investors’ concern that the US Fed could signal interest rates to remain higher for longer than expected.

Indian Rupee traded in a range bound manner yesterday tracking the muted performance in Asian markets as markets play safe prior to the crucial central bank meetings (FOMC, BOJ, RBA & BOE) that are scheduled to be released this week.

In the last week, the Indian Rupee weakened by almost 11 percent due to fall in the local equities as investors looked to book profits prior to year-end closing.