With the Reserve Bank of India taking additional steps to shore up the Rupee, the Indian asset was able to advance to a one-week high against its US rival.
Previous action taken by the central bank has not prevented the Rupee from hitting fresh-record lows against the ‘Greenback’, but the RBI is not giving up.
The US Dollar to Indian Rupee Exchange Rate was in the region of 61.1460 as of 14:20 GMT
The news that every Monday the RBI will auction 220 billion Rupees of cash management bills helped India’s currency achieve its strongest level against the US Dollar since August 1st.
Although the central bank has seen criticism from some quarters for its reaction to the Rupee’s persistent weakness, it is facing particularly challenging times.
‘The sobering information about the dismal state of the economy will effectively be irrelevant for the central bank. The policy action required to resist further pressures on the Rupee is at odds with the policies required to help cushion the economy and help boost growth.’
Today Finance Minister Palaniappan Chidambaram asserted that the government intends to curb some imports in order to trim the nation’s current account deficit. Imports of gold and silver will be affected.
The US Dollar to Rupee (USD/INR) exchange rate hit a high of 60.4800
Chidambaram commented: ‘The RBI has taken a number of measures to increase the interest rate at the short end and this has contained the depreciation of the Rupee to some extent. However, we believe that we have to do more to contain the current-account deficit to reduce the volatility in the currency market and to stabilise the Rupee.’
However, despite governmental assurances that steps are being taken, as trade continued the Rupee shed gains as a result of concerning domestic data.
Figures have shown that industrial production was down 2.2 per cent in July from a year earlier while consumer prices climbed 9.64 per cent month-on-month in July.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 94.6112 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 81.2069 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.1460 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.1463 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 49.0773 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.3201 >
(Correct as of 14:20 GMT)