The Indian Rupee is on track to make its biggest weekly rally since September as investor optimism was stoked by expectations that today’s Indian election result will show that the opposition BJP party won by a landslide.
“Counting shows the BJP is poised for a majority win, which has boosted the Rupee. The sharp surge in local stock indexes is also a positive for the Rupee,” said an economist from Greenback Forex Services Pvt. in Mumbai.
In the run up to today’s election result the Rupee has advanced by as much as 2.3% against the US Dollar. Extending its rising streak, the Indian Rupee appreciated by 41 paise to trade at fresh 10-month high of 58.88 against the Dollar as it was buoyed by foreign capital inflows on expectations of stable government at the Centre.
The Rupee had gained 39 paise to close at a nearly 10-month high of 59.29 against the US Dollar yesterday.
Today, it gained further on sales of the US currency by banks and exporters. Weaker than expected industrial production data out of the US weighed upon the US currency.
Sterling meanwhile remains under pressure from events earlier in the week. The Bank of England talking down the prospect for an interest rate rise and its failure to improve its growth forecasts for the rest of the year, a move that disappointed economists.
The BoE said it now expects economic growth of 2.9% in 2015, up from 2.7% in its February report, and said the rate of growth this year would remain unchanged at 3.4%.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,99.1713 ,
US Dollar,,Indian Rupee,59.0425 ,
Euro,,Indian Rupee,81.0303 ,
Australian Dollar,,Indian Rupee,55.1753 ,
[/table]
Comments are closed.