As another day of trading progressed the Rupee edged lower against the US Dollar as the North American asset was broadly boosted by the prospect of encouraging domestic data.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 101.9350 as of 10:10 GMT
Overnight the ‘Buck’ advanced on several of its higher-risk and emerging market rivals.
According to currency strategist Carl Hammer; ‘The US economy is surprisingly strong. All barometers are signalling good momentum. We have had a decent move higher in Dollar-Yen on the expectation payrolls will be strong and that we may get tapering in December.’
However, the Rupee did gain some support from a slightly improved domestic services PMI. The measure of private sector performance rose from 47.1 in September to 47.2 in October, still in contraction territory but gradually edging towards the 50 mark separating growth from contraction.
In a statement issued with the data economist Leif Eskesen commented; ‘Service sector activity remains subdued, but would at least appear to be stabilising. The inflation picture is a bit mixed, with prices charged rising at a faster pace while input price inflation eased somewhat.’
Eskesen continued; ‘Looking ahead, economic activity is expected to remain soft in coming months as high inflation, tighter financial conditions and structural constraints continue to weigh on growth.’
The Pound Sterling to Rupee (USD/INR) exchange rate hit a low of 101.7920
The Rupee was also able to advance on the Pound as the UK services sector was shown to have expanded at a slower pace in November.
Britain’s services index came in at 60.0, down from 62.5 the previous month and lower than the 62.0 forecast.
While this week’s UK construction and manufacturing PMI impressed, allowing the Pound to enjoy a bullish relationship with its rivals, this negative result lessened Sterling’s appeal as the Bank of England policy meeting approaches.
The Bank of England is scheduled to deliver its rate decision tomorrow.
With Indian data thin on the ground for the rest of the week further Rupee movement may be inspired by global developments.
Friday’s US non-farm payrolls report will be of particular importance as a strong sign of improvement in the employment sector could prompt the Federal Reserve to taper stimulus earlier than expected.
Current Rupee (INR) Exchange Rates:
< Down > Up
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 101.9350 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.5484 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.3100 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.1843 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.9999 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.4177 <
(Correct as of 10:10 GMT)
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