RBI set the reference rate for USD/INR at 74.42 levels

Abhishek Goenka IFA Global

The USDINR pair made a gap up opening at 74.54 levels and traded in the range of 74.38-74.58 with a downside bias. The pair finally closed the day at 74.40 levels. Some foreign banks were said to have sold dollars likely for inflows into Indian companies looking to raise funds through offshore investors, which supported the rupee. The rupee rose to as much as 74.38 a dollar in the spot market today. On an annualized basis, the premium on the one-year, exact-period dollar/rupee contract stood at 4.47%, against 4.50% recorded in the previous day. The new 10-year G-Sec benchmark 06.10 GS 2031 closed the day at 6.1648 levels.

The Reserve Bank of India set the reference rate for USDINR at 74.42 levels. India's FX Reserves rose to USD 612.73 billion as against USD 611.9 billion recorded in the previous print. U.K. retail sales surged unexpectedly in June as the volume of goods sold in shops and online rose to 0.5% from the month before. Britain's rapid economic bounce-back from the pandemic slowed sharply in July. The composite PMI dropped to 57.7 in July from 62.2 in June.

Eurozone business activity expanded at its fastest monthly pace in over two decades in July as Composite PMI Index climbed to 60.6 in July from 59.5, its highest reading since July 2000. Oil prices fell below $74 a barrel today but were on track to end the week largely unchanged after rebounding from a sharp drop on Monday, underpinned by expectations that supply will remain tight as demand recovers.

Download The Full Daily Currency Highlights

Author

Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.