The Indian Rupee fell to an 11-month low on Monday as speculation continues to mount that the US Federal Reserve will choose to slow down its asset purchasing programme as the US economy continues to shows signs of improvement.
Indian investors are concerned that any scale back of the Feds quantitative easing regimen would reduce the asset purchases that spurred the flow of funds into emerging markets such as India.
Fed Chairman Ben Bernanke said in May that the US Central Bank will reduce asset purchases if there are signs of a sustained improvement in the US economy. Just last week economic data showed that those terms are being fulfilled as consumer confidence in the US surged to a five year high and as the unemployment rate continues to show signs of improvement.
“Right now, there is still debate on about the outlook for policy in India and abroad, and investors will be cautious,” said Vikas Babu, a trader at a state-run bank in Mumbai. “We will see exporters selling dollars as well, so there should be some respite for the rupee.”
India meanwhile is showing signs of a economic slowdown as the issue of its deficits continues to be a point of contention. The Indian economy also expanded less than 5% for a second consecutive quarter and the country’s central bank governor Duvvuri Subbarao said that the nation’s payment balance is under stress.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 86.4847
The Euro/Indian Rupee Exchange Rate is currently in the region of: 73.7455
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.6224
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.5857
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.1786
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 54.6666
(Correct as of 12:00 pm GMT)
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