As with the majority of other highly traded currencies, Rupee movement has been largely directed by US focused speculation this week.
The US Dollar Exchange Rate was in the region of 58.8250 against the Indian Rupee as of 10:55 am GMT
During the local session the Rupee continued to trade close to the record closing low recorded on Tuesday, but the USD/INR paring will undoubtedly experience additional fluctuations following Federal Chairman Ben Bernanke’s fiscal policy statement, due out at 19:30 GMT.
Investors are hoping that Bernanke will reveal whether the Fed is likely to taper stimulus in the months ahead.
Although the FOMC gathering is the week’s most influential news when it comes to the foreign exchange market, the recent steps taken by the Reserve Bank of India and national government are expected to have a positive effect on the Rupee in the long-term.
A senior economist with Dun and Bradstreet (or D&B, a global research firm) commented: ‘The Indian economy is currently undergoing a phase of consolidation which is expected to continue till September 2013, post which we are likely to witness a steady growth given a normal monsoon and no external shock. Although the Finance Ministry’s statement to initiate a fresh round of policy initiatives brings forth the government’s good intention, how quickly these are translated into action will lead to a boost in the investor’s sentiment.’
The Rupee recovered before dipping against the US Dollar
As European markets opened the Rupee recovered 15 paise before dipping to 58.83 Rupees per Dollar.
D&B are anticipating that the Rupee will continue to feel the pressure in the near term, but will average at roughly 57.30 through the remainder of this month.
An absence of significant Indian economic news this week may limit Rupee movement, but volatility inspired by US news could have a major effect.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 91.8043 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.7257 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.8350 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.8767 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.1346 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 57.5879 >
(Correct as of 11:00 am GMT)
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