The Indian Rupee has weakened against the US Dollar as demand for riskier assets wane and as data showed that India’s current account deficit widened sharply.
According to the Reserve Bank of India the nation’s current account deficit widened to 4.9% of GDP in the third quarter of the fiscal year, the figure is up from the 4% recorded in the previous year. Despite the rise the figure was less than economists had forecasted. The rise from $16.9 billion to $21.8 billion was less than the $23 billion being expected by some experts.
India’s economy took a hefty knock during the summer as the country’s currency and battered by concerns over a possible tapering of the US Federal Reserve’s monetary easing programme. Since May the trade deficit has almost halved and programmes to entice more Dollars into the country have assisted a 4.9% recovery in the value of the Rupee.
India’s imports have fallen for three consecutive months whilst exports climbed by 13% in August from the previous year.
“Concerns over deficit financing are alleviating due to improvement in the trade deficit in recent months and steps by the Central Bank to boost Dollar inflows,” Said a strategist from Religare Capital Markets Ltd in Mumbai.
Weighing upon the Rupee is the lack of demand for perceived riskier emerging market currency’s as investors grow increasingly jittery ahead of the midnight deadline for the US Congress to raise the nation’s debt ceiling.
Current Rupee (INR) Exchange Rates
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 101.0998 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.5707 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.6449 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.3487
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.7939 >
(Correct as of 14:30am GMT)
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