During local trading the Rupee strengthened against peers like the Pound and US Dollar as bonds climbed and the Reserve Bank of India calmed deficit concerns.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 101.2760 as of 11:10 GMT
The central bank has now forecast that the nation’s current account deficit will narrow from record levels in early 2014.
During a press conference RBI Governor Raghuram Rajan asserted that with the central bank bolstering the financial system the deficit for the broadest measure of trade will decline from 88 billion Dollars to roughly 56 billion Dollars.
The central bank chief commented; ‘We believe the weak economy, increases in food supply, and recent policy rate hikes will provide a disinflationary impetus over time, and recent data do not dispel this view. We will watch the incoming data carefully, especially looking for the effects of the harvest on food prices as well as the second-round effects of fuel-price increases and exchange-rate depreciation, before we make further decisions on interest rates.’
The RBI’s intention to buy 80 billion Rupees of bonds set for November 18th also helped the Rupee rebound from a multi-week low against the ‘Greenback’.
Rupee gains against the Pound were also aided by the news that UK retail sales declined unexpectedly last month.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a low of 100.6320
However, while the Rupee largely retained its advance against the Pound, the Indian asset shed gains against the US Dollar as data revealed that Indian inflation accelerated by more than anticipated last month.
In October the wholesale-price index jumped 7 per cent year-on-year, up from 6.46 per cent the previous month.
Economists expected the reading to come in at 6.95.
This latest result will put pressure on the RBI to increase interest rates once more, and industry experts are now speculating that the benchmark interest rate could reach 8 per cent by next spring.
With further UK and Indian data lacking for the rest of the week GBP/INR movement may be limited.
The USD/INR pairing however can be expected to fluctuate in response to US initial jobless claims and trade balance data.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 101.2760 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.9700 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 63.2400 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.7546 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.1532 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.2950 <
(Correct as of 11:10 GMT)
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