Yesterday the Rupee hit a ‘lifetime’ low of 58.98 Rupees per Dollar, largely due to inflows of cash into emerging markets being severely knocked by ongoing speculation regarding the Federal Reserve bringing an end to quantitative easing.
The US Dollar Exchange Rate was in the region of 57.9375 against the Indian Rupee as of 11:15 am GMT
Now the Rupee’s decline has attracted the attention of the Indian media.
According to one publication, The Times of India, the nation’s ‘significantly larger current account deficit’ has resulted in the Rupee becoming ‘the most battered’ Asian currency. The paper stated: ‘The government must abandon its business-as-usual attitude and actually create conditions to narrow the deficit’.
Other publications have warned that a weaker Rupee could fan inflation, and that the currency’s drop should act as a wakeup call for the government and encourage it to take decided action.
Conversely, The Tribune believes that Indian exporters are likely to benefit from the local currency’s decline.
The Rupee strengthened on central bank intervention
However, the Rupee opened trade stronger on Wednesday ahead of the publication of Indian industrial production data.
According to reports, the Indian finance ministry and central bank stepped in in order to prevent any further Rupee losses.
As Reuters reports: ‘Finally the central bank stepped in. The selling was not huge, but enough to cause a rebound in the Rupee.’
The industrial production report showed lower than expected growth. Industrial production declined from 2.5 per cent to 2 per cent in April from a year earlier, rather than dipping to 2.4 per cent as expected.
Still to look out for this week are Friday’s balance of trade and inflation rate figures.
Next week the Reserve Bank of India will deliver its rate decision.
Current Rupee (INR) Exchange Rates
< Down > Up
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.7743 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 76.9575 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.9375 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.2707 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.2002 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 56.9673 <
(Correct as of 11:15 am GMT)
Comments are closed.