The Indian Rupee strengthened by 10 paise against the US Dollar extending its winning streak for a third day in succession. The Rupee also made gains against Sterling as the UK currency continues to weaken.
The Rupee is set to make further gains as demand for the Euro is likely to boost sentiment for the Rupee. So far this week the Euro has rallied posting its largest one-day gain in two months against the US Dollar. The rise comes after the European Central Bank President Mario Draghi said that the Bank will not be cutting interest rates anytime soon. Traders also expect dollar inflows towards the stake-sale in a government firm. The Indian government will sell a 12.5 percent stake in state-run Rashtriya Chemicals and Fertilizers (RCF) Ltd through an auction of shares to raise about $57 million.
The Indian currency’s rise makes it the best performing currency in Asia today after currencies such as the South Korean Won and Japanese Yen were weakened by dampened sentiment as a result of North Korea’s threat to turn both Seoul and Washington into “a sea of fire,” and said that a ‘second Korean war is inevitable’.
“If North Korean attacks South Korea with a nuclear weapon, Kim Jong-Un’s regime will perish from the earth. Although atomic bombs were used twice in the past to end World War II, if a nuclear bomb is used against a free and democratic society … then mankind would not forgive it,” said South Koreas defence ministry.
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