The Indian Rupee weakened for a second consecutive day against the US Dollar as concerns over inflation caused investors to worry that the Indian Central Bank will opt to increase borrowing costs despite growth in the nation’s economy being close to its lowest level in almost ten-years.
Concerns are mounting after data released last week showed that prices for wholesale goods jumped by 6.46% and consumer goods leapt by 9.84% in September.
Also weighing upon the Rupee is the ongoing uncertainty as to when the US Federal Reserve will choose to start tapering its monetary easing programme which benefits the Rupee. Expectations that nay cut will be pushed back until next year supported the Rupee for a time before concerns over the wider Indian economy weighed.
“Inflation concerns will be primary,” said Ashtosh Raina, head of foreign exchange at HDFC Bank in Mumbai. “There is also concern about dollar supplies as the swap window for banks expires next month and oil demand could also come into the market.”
Oil prices edged higher early in the session also putting pressure on the Rupee as dealers take a wait-and-see approach towards the release of tomorrow’s delayed US economic data.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.3958
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.0797
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.4749
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4536
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.1033
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.6899
(Correct as of 11:15 am GMT)
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