As declining Asian stocks pushed investors away from higher-risk and emerging market assets the Rupee faltered. The currency then extended widespread declines as Indian manufacturing PMI revealed that the sector shrank for another month.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 99.0325 as of 11:40 GMT
The headline index came in at 49.6, the same as September’s level, but the data hinted at dropping production and falling new orders.
In a comment published with the report one HSBC economist observed; ‘Manufacturing activity contracted for the third consecutive month in October. Order flows remain weak, despite a bounce-back in export orders over two months of decline. Moreover, businesses continue to cut back purchases and a rise in inventories suggest that output will remain subdued. Input price inflation accelerated further despite the weak growth backdrop, as the effects of the depreciated exchange rate continues to pass through.’
One bright spot of the report was that foreign orders increased for the first time since July, with the weaker Rupee supporting overseas demand.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 99.5093
The Rupee has been feeling the pressure since the Reserve Bank of India raised the key repurchase rate to 7.75 per cent on October 29th in response to inflation concerns, and any lacklustre data releases will just add to the list of challenges the central bank has to face.
In contrast to India’s manufacturing news, a UK PMI report showed that the nation’s manufacturing sector expanded strongly in October.
Although the index came in at 56.0, below the 56.4 expected, the report still indicates that manufacturing made a positive contribution to overall UK growth in October, getting the fourth quarter off to a strong start.
The Rupee was also weaker against the US Dollar ahead of the release of US ISM manufacturing figures. With economists foreseeing a positive result, the Rupee could post further declines before the weekend.
Current Rupee (INR) Exchange Rates:
< Down > Up
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.0325 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.6171 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.8425 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.5697 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.1335 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4384 >
(Correct as of 11:40 GMT)
Comments are closed.