The Rupee has weakened to a two-week low against the US Dollar, dropping for a fourth consecutive day due to an increase in demand for the safe-haven ‘Greenback’ and ongoing worries over the strength of India’s economy.
The Rupee is also being weighed down by the rise in global crude oil prices which began last week. As a result of the commodity’s increase in value, demand from oil importers for the US currency increased.
Duvvuri Subbarao the governor of the Bank of India didn’t help the Rupee either after he said that inflation in the country is still high, casting doubt over whether the Central Bank will cut interest rates at its policy review due to be held in March. The Indian economy has posted a sharp slowdown in recent months damaging the prospect of growth.
“The rupee was mostly stuck in a band in light volumes but there was good demand from oil firms which pushed the unit down,” said A. Ajith Kumar, a foreign exchange dealer with Federal Bank.
The currency was also harmed by the weaker Euro. The single currency fell to a two-week low against the Dollar in morning trading. The Rupee has also been unable to find any support from other Asian markets as the majority are closed to celebrate the new Lunar year.
Tuesday will see the release of the latest factory output data which is expected to show that Indian factory production may have risen by 1.1% as global demand remains weak. Before the figures are released the Rupee is expected to trade in the region of 53 to 54.
These rates were correct as of 15:40 pm
The Indian Rupee to Pound exchange rate is currently trading at 0.01185
The Indian Rupee to US Dollar exchange rate is currently trading at 0.01857
The Indian Rupee to Euro exchange rate is currently trading at 0.01389
The Pound to Indian Rupee exchange rate is currently trading at 84.40365
The Euro to Indian Rupee exchange rate is currently trading at 72.00385
The US Dollar to Indian Rupee exchange rate is currently trading at 53.86337
Comments are closed.