Although the Rupee had some respite from its recent run of declines against the US Dollar yesterday, the Indian currency’s slump continued during local trade despite the ‘Greenback’ broadly softening in the aftermath of yesterday’s GDP data, as India posted growth of just 5 per cent for the financial year.
The US Dollar Exchange Rate was in the region of 56.5875 against the Indian Rupee as of 10:00 am GMT
The Rupee weakened to 56.53 against the US Dollar as investors rallied following yesterday’s US growth disappointment and began to look ahead to next week’s US non-farm payrolls figures.
A strong improvement in US employment could combat the nation’s slightly-lower-than expected growth and prompt the Fed to begin scaling down the level of asset purchases in the months ahead.
News that India’s growth hit a decade low of 5 per cent in the 2012-2013 financial year wore on the nation’s currency, as did concern that if the Federal Reserve reduces bond-buying the Dollar supply will be limited, potentially exposing the Asian currency to a record current account deficit.
In the last four-weeks the Rupee has fallen by 4.8 per cent against the ‘Greenback’, its most significant slide for a year.
The Indian GDP result was in line with expectations. Quarter-on-quarter India posted growth of 4.8 per cent, down from 5.1 per cent a year earlier.
Yesterday Reserve Bank of India Governor Duvvuri Subbarao asserted that India’s balance of payments is under pressure, and that attracting stable capital flows is a challenge.
As financial strategist Wee-Khoon Chong noted: ‘Market sentiment is firmly on Fed tapering and positive [US] economic momentum. India’s current account deficit remains a big issue.’
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 86.0150 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 73.7407 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.5875 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.3140 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.6835 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 54.7080
(Correct as of 10:00 am GMT)
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