{"id":4943,"date":"2023-12-14T10:54:00","date_gmt":"2023-12-14T05:24:00","guid":{"rendered":"https:\/\/gwcindia.in\/blog\/\/?p=4943"},"modified":"2024-08-31T15:32:34","modified_gmt":"2024-08-31T10:02:34","slug":"fx-rates-usdinr-forward-rate-december-14-2023","status":"publish","type":"post","link":"https:\/\/www.gwcindia.in\/blog\/fx-rates-usdinr-forward-rate-december-14-2023\/","title":{"rendered":"FX RATES AND USDINR FWDS :"},"content":{"rendered":"

FX Rates and USD INR Forward Rate December 14, 2023<\/h1>\r\n

Major developments:<\/b><\/h4>\r\n
USD is now at 83.31. USDINR opened at 83.28. Fwd\u00a0<\/span><\/span><\/b>premia –\u00a0<\/span><\/span><\/b>1\u00a0year\u00a0fw<\/strong>d <\/b><\/span><\/span>premia is at 1.73% p.a<\/b><\/span><\/span>.\u00a0<\/span><\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
-Fed has signaled rate hike and has indicated 3 rate cuts next year.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
-US inflation is expected to moderate to 2.4% next year and GDP could soften to 1.4%.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
-USD declined as 10 Year yield slumped to 3.98% and Equities surged.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
-USDINR fwd premia has inched higher to 1.73% annualized <\/b>for 1 year on the back of US\u00a0<\/b>Yields drop.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
-ECB and BOE meetings are focus events for the day.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
USDINR outlook: USDINR is kept range bound by RBI. Three positives for Rupee are\u00a0<\/b><\/div>\r\n
\u00a0<\/div>\r\n
1) US rate may have peaked, 2) Crude has declined below USD 75, 3) Robust FII inflows. FII <\/b>inflows have invested Rs 1.4 lac in this calendar year.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
Negatives: 1) Possibility of Yuan decline and hence Asian FX could fall due to Chinese <\/b>economic worries. <\/b>Considering next year election, RBI may not allow Rupee to create headlines and increase <\/b>inflation due to fall. Hence, expect RBI to be active on both sides. However, due to the first <\/b>three reasons, threat for bigger Rupee fall seems to have receded significantly.\u00a0<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
The caveats are : 1) Chinese Yuan movement, 2) ECB’S rate decisions. If ECB is forced to act <\/b>more quickly than Fed in projecting next year rate cuts, USD could climb back. However, due <\/b>to uncertain nature of USD- Euro interest rate differentials, expect consolidation in USD index <\/b>offering two way range bound movement and not pose any threat to Rupee. <\/b>Based on the above expectations, Exporters can hedge at around 83.40 and importers can <\/b>hedge in the 83.05-83.25 zone.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
Fwd premia is expected to climb higher as US Yields retrace more than Indian Yields.\u00a0<\/b>1 Year fwd premia has jumped 10 bps today to 1.73% and this could gradually climb above 2% <\/b>in coming months, offering better incentive for exporters.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
RBI rates<\/span><\/b><\/div>\r\n
\r\n\r\n\r\n\r\n\r\n
Trade Date\u00a0<\/strong><\/td>\r\n1 USD<\/strong><\/td>\r\n1 GBP<\/strong><\/td>\r\n1 EUR<\/strong><\/td>\r\n100 YEN<\/strong><\/td>\r\n<\/tr>\r\n
13-Dec-23<\/strong><\/td>\r\n83.39<\/strong><\/td>\r\n104.65<\/strong><\/td>\r\n89.93<\/strong><\/td>\r\n57.2<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/b><\/div>\r\n
\u00a0<\/div>\r\n
-USDINR is at 83.31.Prior day’s close was 83.40.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
-Indian Equity indices climb.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
-Indian 10 year G-SEC yield is at 7.21%.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
-USDINR 1 yr fwd premia is at 1.72%.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
USDINR @ 83.31,<\/b>\u00a0EUR\/USD@ 1.0902, GBP\/USD @ 1.2638, USD\/JPY @ 141.62<\/b>, EUR\/INR @ 90.81,\u00a0<\/b>GBP\/INR @ 105.29,\u00a0<\/b>JPY\/INR @ 58.81. <\/b>Gold@2031, Brent Crude @ 74.50, Nifty @ 21170(+243), 10 Year G-SEC @ 7.21%.<\/b><\/div>\r\n
\u00a0<\/b><\/div>\r\n
Hedging: <\/b><\/div>\r\n
USDINR payables can be hedged on dips to 83.24\/83.18 .<\/b>\u00a0<\/b>Eur receivables can be hedged <\/b>now<\/b>. <\/b>GBPINR<\/b>\u00a0receivables\u00a0<\/b>can be hedged now.<\/b><\/div>\r\n
\u00a0<\/div>\r\n
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FX Rates and USD INR Forward Rate December 14, 2023 Major developments: USD is now at 83.31. USDINR opened at 83.28. Fwd\u00a0premia –\u00a01\u00a0year\u00a0fwd premia is at 1.73% p.a.\u00a0 \u00a0 -Fed has signaled rate hike and has indicated 3 rate cuts next year. \u00a0 -US inflation is expected to moderate to 2.4% next year and GDP […]<\/p>\n","protected":false},"author":6,"featured_media":4769,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"image","meta":{"_acf_changed":false,"footnotes":""},"categories":[36],"tags":[],"class_list":["post-4943","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-currency-update","post_format-post-format-image"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/4943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/comments?post=4943"}],"version-history":[{"count":3,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/4943\/revisions"}],"predecessor-version":[{"id":8798,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/4943\/revisions\/8798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media\/4769"}],"wp:attachment":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media?parent=4943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/categories?post=4943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/tags?post=4943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}