The Indian Rupee has jumped the most since 2009 and has rebounded from Wednesday’s record low against the ‘Greenback’ as speculation builds that the Indian Central Banks plan to supply Dollars to oil importers will lead to a reduction in demand for foreign currencies.
The Reserve Bank of India has said that it will provide foreign funds to the state-run Oil Corporation Bharat Petroleum Corp. and the Hindustan Petroleum Corp. The Bank said that it would then re-buy the funds after a specific time.
“The RBI’s measure has brought relief to the markets but it should have come much earlier than now when policy makers have their backs to the wall. The Syrian situation is the joker in the pack. If it gets resolved then the Rupee should find more support” K.Ramananthan, chief investment officer at ING told Bloomberg.
Economists are expecting the Central Banks plan to provide Dollars to oil companies via foreign exchange swaps could boost the Rupee back up to 65 per Dollar. India’s top three oil firms buy around $300 million each day from the local forex markets. The plan has some merits as it is a similar strategy used in 2008 to help stave off the global financial crisis.
Despite Thursdays rally the Rupee remains highly vulnerable. The situation in Syria has hiked the price of oil as concerns mount that any conflict could disrupt supplies from the Middle East.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 104.9812 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 89.7694 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 67.6997 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.5899 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.7749 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 64.4573 <
(Correct as of 11:15 am GMT)
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