Today, the EURINR currency pair traded lower during the Indian trading session and even closed lower, but this did not last. As Jerome Powell’s Jackson Hole speech began, the currency pair reversed course and headed higher during the North American trading session.
Investors reacted negatively to the speech as the US dollar fell against its peers, led by the Euro, which rallied higher, leading to the rally seen in the EURINR pair. The currency pair was headed higher at writing as Powell’s speech indicated that a rate cut was guaranteed during the September meeting.
The EURINR currency pair rallied higher since August 02, 2024, when it was trading at a low of 90.24 to its current highs near 93.66. The pair had pulled back on Thursday (yesterday). The European Central Bank is also expected to cut interest rates in September, but there is no guarantee of future rate hikes.
EURINR price chart today
The euro has rallied against the US dollar and other currencies, including the Indian rupee. It remains to be seen whether the euro will hold on to its gains as the September rate cuts are implemented.
Therefore, the price action witnessed today in the EURINR was primarily driven by the euro’s increasing rally against the US dollar instead of other market factors.
This post was last modified on Aug 23, 2024, 15:56 BST 15:56