When the European session opened the Rupee was slightly stronger against the Pound and close to a two-week high against the US Dollar as fears for India’s economic recovery eased slightly following the release of a domestic manufacturing report.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 101.9210 as of 10:00 GMT
Weak growth and poor data releases have dogged India in recent months and the Rupee has broadly softened as a result.
However, after hitting historic lows against the ‘Greenback’ earlier in the year the Rupee is enjoying comparatively calmer waters and was boosted during local trading as a gauge of manufacturing signalled a return to growth for the sector after four months of contraction.
For the first time since July HSBC manufacturing PMI came in above the 50 line separating expansion from contraction, recording a reading of 51.3 in November from 49.6 in October.
The result was the strongest since March and signalled a rise in new orders and improvement in production levels and purchasing activity.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a low of 101.2680
In a statement issued with the figures HSBC economist Leif Eskesen commented; ‘Manufacturing activity picked up led by a rise in new domestic orders, which helped pull up output growth. Encouragingly, input and output price inflation eased, which, if sustained, could imply that the Reserve Bank of India is getting closer to the end of its tightening cycle, although it may still need to notch rates up a bit further.’
Job creation also continued at a slow pace.
While the Rupee rallied against the US Dollar in the hours following this data release gains against the Pound were limited after UK manufacturing PMI also trumped estimates.
The measure of the British manufacturing sector surged to 58.4 in November rather than rising to 56.1 as forecast and the Pound consequently adopted a bullish relationship with its rivals.
However, if Wednesday’s HSBC/Markit services PMI also beats estimates the Rupee could recover ground against a strong Sterling.
Last month the measure came in at 47.1, below the line separating growth from contraction. If the services sector expanded unexpectedly the Rupee will be lent further support.
With economists expecting US ISM manufacturing figures to show a decline, the Rupee may extend its advance on the US Dollar in the hours ahead.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 101.9210 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.3681 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.1210 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.8413 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.8270 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.4268 <
(Correct as of 10:00 GMT)
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