12 Jun 2023

Indian Rupee remains stable following RBI policy outcomes

Indian rupee exchange rate against USD remained stable on weekly basis after RBI’s decision to maintain status quo policy repo rate. Rupee got support as RBI MPC has decided to remain focused on withdrawal of accommodation to control inflation.

author dp
Team INRBonds
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       RBI has maintained pause on policy repo rate with withdrawal of accommodative stance to curb inflation. Followed by MPC outcomes, rupee appreciated to Rs 82.43 per USD from Rs 82.62 per USD. On a weekly basis, the rupee depreciated by 0.17%.

       The US Dollar Index declined by 0.45% on a weekly basis.

       US Composite PMI came in at 54.3 in May 2023 as compared to 53.4 in April. The rise in PMI denoted the fastest expansion in business activity for just over a year, driven by the service sector.

       The US trade deficit widened to a six-month high of $74.6 billion in April of 2023, compared to a $60.6 billion deficit in March. Exports declined 3.6% to $249 billion while imports increased 1.5% to $323.6 billion.

       The US unemployment benefits jumped to 261,000 in the week ended 3rd June, the highest figure since October 2021, and above market forecasts of 235,000.

       The Eurozone GDP expanded by 1% year-on-year during Jan-March 2023, lower than initial estimates of a 1.3% rise, and the weakest performance since the covid hit in 2020. 

 

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