The Indian Rupee is on track to make its sixth consecutive weekly drop, the troubled currencies longest losing streak in a year.
The Rupees poor run comes as speculation increases that the US Federal Reserve will choose to scale back its asset purchasing programme which have boosted inflows of foreign cash into emerging markets such as India’s. Indian bonds have also fallen over worries that the weaker Rupee could spur inflation.
On June the 11th the Rupee fell to its lowest ever level before regrouping as credit ratings agency Fitch Ratings revised India’s credit-rating outlook to stable from negative after the Indian Central Bank took measures to intervene in the Forex market and prevent the Rupee declining beyond the 60 mark.
“The Rupee’s fall has not been in isolation,” R. Sivakumar, head of fixed income at Axis Asset Management Co., wrote in a research report yesterday.“Rupee weakness increases the cost of imported commodities and could have an adverse impact on inflation in the coming months.”
The currency’s weakness was triggered after Federal Reserve Chairman Ben Bernanke suggested that the Fed could reduce its stimulus efforts should US employment show ‘substantial signs of improvement’. With US jobs data showing signs of improvement, albeit below Bernanke’s target, investor speculation that a cut to the monetary easing policy could soon be at hand, causing them to seek safety in the safe haven US Dollar and Japanese Yen.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.1657 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 76.7947<
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.597
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.4154 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 56.6243 >
(Correct as of 10:15am GMT)