The Indian Rupee has fallen to a six-month low against the US Dollar after the Federal Reserve hinted at the possibility of trimming its bond buying programme yesterday.
The Rupee declined for a sixth consecutive day, the currencies longest losing streak since December 2011. The currency’s fall came after Federal Reserve Chairman Ben Bernanke told the US Congress that the Central Bank could slacken its $85 billion a month of bond purchases if it sees signs of a sustained improvement to the US economy. Such a move has raised concerns that inflows to emerging currencies such as the Rupee may suffer.
“There’s concern portfolio capital flows may drop if the Fed scales back stimulus,” said Shubhada Rao, chief economist at Yes Bank Ltd. in Mumbai.
“Sustained inflows are crucial for supporting the rupee given the current-account shortfall.”
Exporters have been intermittently stepping in with dollar sales but the rupee won’t be able to pare losses significantly because dollar momentum is strong, currency dealers in Mumbai said on Thursday.
So far on Thursday the Rupee has declined by a hefty 37 paise against the ‘Greenback’. Besides the US Dollar’s gains against the Euro and other currencies in the markets, sustained Dollar demand from importers and some banks and a lower opening in the stock market will put continuing pressure on the Rupee.
Current Indian Rupee (INR) Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 71.8401
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 55.8326
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 53.7723
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 84.0429
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0139
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0179
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0119
These exchange rates were correct as of 11:45 am