The Indian Rupee has risen to its highest level since October due to optimism that the first interest rate cut made by the nation’s Central Bank in nine-months will kick-start economic growth and attract investors.
So far today the Rupee has advanced by 0.9% touching its highest level since the 18th of October 2012. This month the currency has risen by 3.2% and is expected to rise further. The rises come after the Reserve Bank of India lowered the benchmark repurchase rate to 7.75% from 8% and said that cooling inflation would give it more room to ease monetary policy further.
Analysts at Barclays said that; “We expect gradually ebbing inflationary pressures to facilitate further rate cuts in coming months, which are likely to promote greater economic growth and foreign inflows. Emerging market currencies that offer carry, such as the rupee, remain attractive against the backdrop of still-ample global liquidity.”
The Reserve Bank has lowered its inflation forecast for March, the final month of the current fiscal year, to 6.8% from 7.5%. The benchmark wholesale-price index increased from 7.18% in December from the year earlier, the slowest pace in three years, government data show. The monetary authority also said it will consider India’s fiscal deficit and record current- account shortfall while deciding policy.
These exchange rates were correct as of 12:45 am
The Pound to Rupee exchange rate is currently trading at 83.9808
The US Dollar to Rupee exchange rate is currently trading at 53.2105
The Euro to Rupee exchange rate is currently trading at 72.0843
The Rupee to Pound exchange rate is currently trading at 0.01190
The Rupee to US Dollar exchange rate is currently trading at 0.018558