The Indian Rupee strengthened against the US Dollar, rising from a record low after a report showed that India’s current account deficit narrowed in the first quarter of 2013.
According to the Indian Central Bank the current account deficit narrowed by 3.6% of Gross Domestic Product a significant improvement from the unprecedented level of 6.7% from the preceding three months.
“Today’s data helped to an extent but the demand and supply conditions inthe foreign exchange market will soon take ovr this sentiment, said Pareh Nayar, head of currency and money markets at the Indian unit of FirstRand Ltd. “I don’t expect the same magnitude of weakening that we had yesterday but 60 will prove to be a good support.”
Despite the improved deficit data the Rupee remains highly vulnerable to international factors. Yesterday saw the currency tumble to its lowest ever level against the US Dollar. It fell to the all-time low level of 60.765 per Dollar over concerns that a pickup in the US economy would boost demand for the Dollar.
The Rupee had a reprieve after yesterdays US economic data releases showed that the USA’s GDP expansion was less than economist predictions. It expanded at 1.8% from January to March, down from a previous estimate of growth of 2.4%. Consumer spending which accounts for 70% of the US economy was also revised down to a 2.6% gain compared to the previous estimate of 3.4%.
So far this month the Rupee has declined by 6.7%.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 92.2913 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.4749 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.2079
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.1378
(Correct as of 11:20 am GMT)
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