After softening against its US counterpart in the wake of last Friday’s shocking Reserve Bank of India rate decision, the Indian asset has finally strengthened against the ‘Greenback’.
The US Dollar to Indian Rupee Exchange Rate was in the region of 62.4400 as of 15:45 GMT
The Rupee ended the local session 31 paise higher as exporters and financial institutions sold off the US Dollar.
In response to the Rupee’s movement Abhishek Goenka of India Forex Advisors asserted; ‘On account of half-yearly closing, there is a possibility that corporate, mainly IT exporters, might have sold Dollars in the markets. This has helped the Rupee to gain against the US Dollar.’
However, with a spate of influential US data published during North American trading on Wednesday, the USD/INR pairing experienced further fluctuations.
The US Dollar advanced against higher-risk peers like the Rupee as concerns regarding the US budget pushed investors towards safe-haven assets, but gains were limited as US capital goods orders advanced by less than anticipated.
The slightly disappointing gain of 1.5 per cent prompted this response from economist Gennadiy Goldberg; ‘It’s fairly tepid. A lot of companies are very cautious. Nobody wants to build up particularly large inventories or put in orders for equipment when they think there’s a lot of uncertainty on the table’.
The US Dollar to Rupee (USD/INR) exchange rate hit a low of 62.3200
On the flip side, a separate US report showed that US new home sales increased by 7.9 per cent in August rather than the 6.6 per cent gain expected.
The positive result slightly offsets a negatively revised plunge of 14.1 per cent in July.
While US news, and particularly any reference to a potential US government shutdown, will be very influential for the Rupee in the days ahead, India’s current account data (due out on Friday) could also cause fluctuations in the emerging-market currencies.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.2410 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.3190 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.4400 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.4688 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.4568 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.5391 <
(Correct as of 15:45 GMT)
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