The Indian Rupee has fallen to a new record low over the ongoing speculation that the US Federal Reserve will reduce its debt purchases and easing programme. The speculation has damaged the inflows of cash into emerging markets such as India as investors look for higher yields elsewhere and flock back to the US Dollar.
The Rupee inched closer to the 59 mark, after it fell by a whopping 74 paise to hit a new all-time low of 58.90 in the late morning trading session as persistent dollar demand from importers and banks as well as heavy capital outflows amid weak local equities weighed upon the flagging currency.
The Rupee fell by 0.4% in Asian trading after touching an all time low of 58.4175
Economists are estimating that the Federal Reserve will choose to reduce the amount of monthly bond purchases to $65 billion from the current level of $85 billion. Fed Chairman Ben Bernanke last month told Congress that the monetary authority could scale back its bond-buying programme if the employment outlook changes to show a substantial improvement.
“Asian currencies are in free-fall at the moment and its difficult to pick a bottom for the Rupee,” said Jonathan Cavenagh, a strategist at Westpac in Singapore. “We are also possibly seeing investors who have strong equity positions in India hedging their foreign-currency exposure, which is putting pressure on the Rupee.”
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 91.3422>
The Euro/Indian Rupee Exchange Rate is currently in the region of: 77.9977 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.7197 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.9587>
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.9187 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 57.4522<
(Correct as of 11:10 am GMT)
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