30 May 2022

Will INR continue its fall?

The INR is trading at record lows with weakness on multiple fronts of capital outflows, rising trade deficit, high fiscal deficit and rising inflation. RBI cannot sell USD consistently given that market forces ultimately come out on top.

author dp
Team INRBonds
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       USD maintained its uptrend as demand for dollar denominated assets rose in current economic scenario of rising inflation.

       Japanese yen weakened by 1% against the USD at 127.94/USD.

       U.S. initial jobless claims rose to 218000 from 197000 in previous data.

       Eurozone inflation stood at 7.4% in April 22.

       INR continues to fall touching all-time low last week. Rising inflation level and reduction in domestic growth forecast has caused depreciation.

Currencies

20-May-22

13-May-22

Weekly Return

DXY

103.30

104.56

-1.21%

AMERICAS CURRENCIES

 

 

 

USD-BRL

4.8801

5.0604

3.69%

EUROPE, MIDDLE EAST & AFRICA CURRENCIES

 

 

 

EUR-USD

1.0562

1.0412

1.44%

GBP-USD

1.2489

1.2262

1.85%

USD-RUB

60.2325

64.7063

7.43%

ASIA-PACIFIC CURRENCIES

 

 

 

AUD-USD

0.7039

0.694

1.43%

NZD-USD

0.6400

0.6276

1.98%

USD-JPY

127.94

129.22

1.00%

EUR-JPY

135.06

134.55

-0.38%

USD-KRW

1,273.75

1,283.83

0.79%

USD-PHP

52.24

52.457

0.42%

USD-IDR

14,672.45

14,612.50

-0.41%

USD-INR

77.82

77.45

-0.48%

EUR-INR

82.2485

80.3368

-2.32%

USD-CNY

6.69

6.79

1.48%

USD-MYR

4.39

4.40

0.20%

USD-THB

34.45

34.74

0.83%

 

Countries

20-May-22

13-May-22

Weekly Change (bps)

US

2.79%

2.93%

-14

Japan

0.23%

0.24%

-1

UK

1.88%

1.75%

13

Germany

0.94%

0.94%

0

Portugal

2.13%

2.05%

8

Italy

2.98%

2.84%

14

France

1.47%

1.45%

2

Greece

3.71%

3.48%

23

Spain

2.07%

1.99%

8

Brazil

12.16%

12.70%

-54

Russia

10.18%

10.27%

-9

China

2.83%

2.83%

0

South Africa

9.60%

10.00%

-40

Australia

3.23%

3.38%

-15

India

7.36%

7.32%

4

Indonesia

7.39%

7.50%

-11

 

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