12 Jun 2022

Inflation prints spooks currencies

The continuous rise in inflation in the US and Eurozone at 4-decade highs have spooked currency markets, which are not really finding safety given fall in JPY and rise in Euro against the USD.UST and Eurozone bond yields are rising sharply sending out fresh worries on sustainability if debt of governments.

author dp
Team INRBonds
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       US consumer inflation soared to 40-year high level of 8.6% in May 22.

       ECB announced to hike rate by 25 bps in July 22.

       RBI MPC hiked policy repo rate by 40 bps.

       Eurozone GDP expanded by 5.4% during Jan-March 22 on yearly basis.

       The number of employed persons in the Euro Area rose by 0.6% on quarter to 162.9 million during Jan-March 2022.

       Dollar index rose by 2.02% to 104.235.

       Japanese yen, depreciated by 2.62% against the USD at 134.40 a USD.

       Indian rupee depreciated by 0.61% despite rate hike by RBI.

 

Currencies

10-Jun-22

03-Jun-22

Weekly Return

DXY

104.235

102.17

2.02%

AMERICAS CURRENCIES

 

 

 

USD-BRL

4.9875

4.7765

-4.23%

EUROPE, MIDDLE EAST & AFRICA CURRENCIES

 

 

 

EUR-USD

1.0517

1.0719

-1.88%

GBP-USD

1.2313

1.249

-1.42%

USD-RUB

56.8

60.95

7.31%

ASIA-PACIFIC CURRENCIES

 

 

 

AUD-USD

0.7052

0.7208

-2.16%

NZD-USD

0.6360

0.6506

-2.24%

USD-JPY

134.4

130.88

-2.62%

EUR-JPY

141.37

140.27

-0.78%

USD-KRW

1,279.24

1,251.83

-2.14%

USD-PHP

53.06

52.19

-1.64%

USD-IDR

14,552.50

14,437.50

-0.79%

USD-INR

78.18

77.70

-0.61%

EUR-INR

82.18

83.19

1.23%

USD-CNY

6.71

6.66

-0.75%

USD-MYR

4.40

4.39

-0.23%

USD-THB

34.73

34.31

-1.21%

 

Countries

10-Jun-22

03-Jun-22

Weekly Change (bps)

US

3.17%

2.94%

23

Japan

0.25%

0.22%

3

UK

2.45%

2.16%

29

Germany

1.50%

1.26%

24

Portugal

2.75%

2.46%

29

Italy

3.83%

3.38%

45

France

2.07%

1.79%

28

Greece

4.38%

3.72%

66

Spain

2.73%

2.43%

30

Brazil

12.79%

12.59%

20

Russia

8.89%

9.07%

-19

China

2.82%

2.82%

0

South Africa

10.20%

9.83%

37

Australia

3.77%

3.49%

28

India

7.52%

7.46%

6

Indonesia

7.31%

7.08%

23

 

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