The Indian Rupee is on course to make its worst monthly loss in twenty years on Friday as it tops the world’s worst performing currency league due to deepening fears that India’s economic slowdown will scare off investors.
This week saw the Rupee hit new record lows as oil prices soared in the wake of possible military action against the Syrian Assad regime. Fears over a strike caused concern that a conflict in Syria would heavily impact the supply of the commodity from the Middle East. The rate of the Rupee’s decline has nudged India towards its worst financial crisis in decades.
The currency’s rapid decline has caused the Indian Prime Minister to intervene. In a speech to parliament Manmohan Singh said that the fall is a matter of concern as the low value damages the economy and hikes the cost of imports.
In his statement to parliament, Mr Singh said: “clearly, we need to reduce our appetite for gold, economise on the use of petroleum products and take steps to increase our exports.’
In a dig at the USA and other developed nations he said; “In a more equitable world order, it is only appropriate that the developed countries – in pursuing their fiscal and monetary policies – should take into account the repercussions on the economy of emerging countries, Growth will pick up in the second half, barring extreme unforeseen eventualities,” the Prime Minister said.
Singh also added that he expects the strong monsoon season would boost harvests and help keep the inflation of food prices down.
As the week comes to a close the Rupee did manage to recover some ground after the Indian Reserve Bank intervened in the currency markets.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 103.4108 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 88.2295 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 66.6090 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.5584 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.8237 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 63.3061 <
(Correct as of 11:30 am GMT)
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