The Indian Rupee fell to its lowest level in nearly a week against the US Dollar due to continuing demand from state-run banks due to the upsurge in the Indian governments defence purchases.
The decline follows on from the currency’s drop last Friday with the weakness being created after the Indian Central Bank disappointed the markets with its hawkish tone at its annual monetary policy meeting. The disappointment was created despite the Bank’s decision to deliver a widely expected 25 basis point rate cut to interest rates.
Forex Dealers cited continued Dollar buying, particularly by a large state-run bank, as the main trigger for the Rupee’s fall. However, dealers are also watching out for inflows related to some recent corporate deals which should provide some support for the Rupee, with particular attention being made to Qatar’s $1.26 billion investment in Indian telecommunication company Bharti Airtel.
“I expect the Rupee to move in a 53.60-54.80 band for now, in the absence of any global developments or policy announcements. However, if the global dollar strength persists and 54.80 get breached, the Rupee may see a sharp downside,” said Abhishek Goenka, chief executive at India Forex Advisors.
Current Indian Rupee (INR) Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 70.7790
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 54.1163
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 55.1581
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 84.0901
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0141
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0184
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0118
These exchange rates were correct as of 10:45 am
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