The Indian Rupee made its biggest gains in two weeks to reach a weekly high against the US Dollar as heavy selling pressure continues to weigh upon the US currency.
The Rupees advance came after investors grew increasingly concerned over failure by US lawmakers to resolve the impasse over budget negotiations. The Federal government was shut for a second day on Thursday, adding to worries that the impasse could extend to negotiations over raising the world’s largest economies debt ceiling. As a result the Dollar index tumbled for a fifth consecutive day.
President Barrack Obama revealed his exasperation over the stalled negotiations whilst House Speaker John Boehner said that Obama refused to negotiate in his meeting with congressional leaders. With neither side willing to back down over the controversial Obama care health law the markets have increased their bets that the shutdown could extend into next week. The impact on the US economy is not yet known but many economists are worried that the longer the shutdown goes on, the more damage that will be done to economic growth.
“The Dollar is taking a hit due to the US shutdown and that is helping the exchange rate. The market is looking at the overall behaviour of the US Dollar and the developments in the US. Equities are positive and that is helping the Rupee” Said a senior dealer with a private bank.
Speculation that the shutdown will lead to the US Federal Reserve delaying its decision to taper its monetary easing programme has also bolstered the Rupee and other emerging market currencies.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.2870 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.2107 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.9240 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.1163 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.4577 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.9403 <
(Correct as of 12:00 pm GMT)
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