5 Jun 2022

Will the INR depreciate further?

The INR is facing weakness due to issues of global central banks tightening policy, capital outflows, widening trade deficit and rising fiscal deficit along with high inflation expectations. In the short term, INR will continue to depreciate but in the longer term, can attract more FDI flows on global outsourcing.

author dp
Team INRBonds
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       US unemployment rate stood at 3.6% in May 22 while payroll increased by 3,90,000 in May 22.

       US average hourly earnings increased by 0.3% from April, slightly lower than the 0.4% estimate. The year-over-year increase for wages was 5.2%.

       Eurozone inflation rate rose by 8.1% on a yearly basis in May 22.

       Dollar Index rose by 0.53%.

       Japanese yen, depreciated by 2.88% against the USD at 130.88 a USD.

       India’s GDP expanded by 8.7% on a yearly basis during FY22. During Q4FY22, the economy grew by 4.1% y-o-y.

 

Currencies

03-Jun-22

27-May-222

Weekly Return

DXY

102.17

101.63

0.53%

AMERICAS CURRENCIES

 

 

 

USD-BRL

4.7765

4.7374

-0.82%

EUROPE, MIDDLE EAST & AFRICA CURRENCIES

 

 

 

EUR-USD

1.0719

1.0735

-0.15%

GBP-USD

1.249

1.2629

-1.10%

USD-RUB

60.95

66.3671

8.89%

ASIA-PACIFIC CURRENCIES

 

 

 

AUD-USD

0.7208

0.7163

0.63%

NZD-USD

0.6506

0.6532

-0.40%

USD-JPY

130.88

127.11

-2.88%

EUR-JPY

140.27

136.45

-2.72%

USD-KRW

1,251.83

1,256.34

0.36%

USD-PHP

52.19

52.32

0.25%

USD-IDR

14,437.50

14,566.50

0.89%

USD-INR

77.70

77.69

-0.01%

EUR-INR

83.19

83.12

-0.08%

USD-CNY

6.66

6.69

0.45%

USD-MYR

4.39

4.38

-0.23%

USD-THB

34.31

34.13

-0.52%

 

Countries

03-Jun-22

27-May-222

Weekly Change (bps)

US

2.94%

2.74%

20

Japan

0.22%

0.22%

0

UK

2.16%

1.92%

24

Germany

1.26%

0.97%

29

Portugal

2.46%

2.09%

37

Italy

3.38%

2.89%

49

France

1.79%

1.47%

32

Greece

3.72%

3.48%

24

Spain

2.43%

2.03%

40

Brazil

12.59%

12.25%

34

Russia

9.07%

9.51%

-44

China

2.82%

2.76%

6

South Africa

9.83%

9.72%

11

Australia

3.49%

3.25%

24

India

7.46%

7.35%

11

Indonesia

7.08%

7.23%

-15

 

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