Along with several other emerging market currencies, the Rupee posted widespread declines overnight as the hotly anticipated Federal Reserve policy statement draws closer.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 98.6795 as of 10:30 GMT
The Rupee slipped against the Pound and weakened by the most for five-days against the US Dollar as industry experts speculate on the potential outcome of the Federal Open Market Committee’s two-day policy meeting.
While the Fed is expected to maintain the current level of asset purchases this month – a circumstance which would support the Indian economy – economists are now anticipating that the central bank will begin tapering easing in March of next year.
The timeline for the trimming of stimulus has been significantly pushed back in light of the Federal shutdown, and the ‘Greenback’ has softened accordingly, but the Reserve Bank may offer further hints in today’s statement and help the US currency climb.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 98.6795
According to analysts with Credit Agricole CIB, ‘Given that the delay in tapering by the Fed has been largely priced in, risk assets will likely be bound in a relatively tight trading range. [In India] given the recent rebound in inflation pressure and yet tepid growth, the bar to adjust policy rates in either direction will be high in the coming months.’
The Rupee posted significant losses against several of its most traded rivals yesterday as the Reserve Bank of India opted to increase the benchmark repurchase rate to 7.75 per cent.
Yesterday the central bank intimated that wholesale-price inflation is likely to stay above current levels until next year, with CPI holding around 9 per cent.
However, the expectation that this week’s UK house price and manufacturing data will come in lower than the previous month’s reports limited GBP/INR gains.
While today’s FOMC policy statement will be the primary driver of market movement as the day progresses, Friday’s Indian HSBC/Markit manufacturing PMI is also likely to impact the Rupee before the weekend.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 98.6795 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.4487 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.3070 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.4104 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.7673 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.7616 >
(Correct as of 10:30 GMT)
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