The Indian Rupee is forecast to push beyond a one-week high against the US Dollar and push higher against a number of other major peers as risk sentiment improves and the currency continues to benefit from a run of decent data releases for the Indian economy.
Last week’s report which showed that wholesale price gains in India fell to their lowest level in nine months in February boosted the Rupee and sent the nation’s shares index the (SENSEX) to a record high.
Economists are forecasting that due to bunched up inflows as a result of Monday’s national holiday will add further strength to the Indian currency on Tuesday.
“The momentum has been positive for the Rupee amid good data. I expect a status quo at the Indian Central Bank’s policy review on April 1st after the recent rate hikes,” said a trader at Andhra Bank.
The Rupee is also benefitting from an easing in tensions on the global political stage. Economists had been jittery ahead of the West’s imposition of sanctions against Russia over the situation in Ukraine. Tensions eased slightly as the sanctions were deemed as moderate and would have little impact on the global economy.
Despite that the threat of an armed conflict between Ukraine and Russia remains high. The Ukrainian interim government has mobilised the nation’s military and has ordered the creation of a 60,000 strong National Guard unit. If conflict does erupt then odds are that the Ukrainian forces will be no match for the Russians and the risk of outside intervention from the EU or NATO remains.
The US Dollar is trading softer as investors await the release of today’s inflation and housing data. Investors are also looking ahead to Wednesday’s Federal Reserve policy meeting.
Indian Rupee (INR) Exchange Rates
|Pound Sterling||Indian Rupee||101.4630|
|US Dollar||Indian Rupee||61.1100|
|Australian Dollar||Indian Rupee||55.4544|