Yesterday’s encouraging manufacturing report for India may have lent the Rupee support, but the Indian asset slipped against its major rivals during local trading.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 102.3080 as of 10:30 GMT
Declines against the US Dollar were triggered last night as a gauge of US manufacturing unexpectedly rose to 57.3 in November, a more than two-year high, from 56.4 in October. Economists had expected the measure to tumble to 55.1.
This result, coupled with speculation surrounding this week’s US non-farm payrolls report, renewed discussions around the likelihood of the Federal Reserve opting to taper stimulus before next spring.
Consequently the appeal of higher-risk and emerging market assets dimmed and the Rupee posted modest but widespread losses.
As Mumbai-based analysts were quoted as saying; ‘The timing and the extent of the Fed’s taper of quantitative easing is likely to remain a key determinant of the currency market dynamics for emerging markets as a whole. For India, this will also be overlaid with domestic issues’.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 102.4970
Slowing domestic growth and a softening Rupee have piled pressure on the Reserve Bank of India in recent months and the central bank has taken several steps to shore up the nation’s flagging economy.
If tomorrow’s Indian HSBC/Markit services PMI also surprises to the upside the Rupee could recover losses before the week’s big US news.
However, during European trading the Rupee fell lower against a bolstered Pound as surprisingly upbeat UK construction PMI resulted in Sterling strength.
The seventh monthly increase in UK construction activity added to the nation’s brightening economic outlook and prompted this response from David Nobel of the Chartered Institute of Purchasing and Supply; ‘Supported by favourable market conditions, new orders increased at the joint-fastest pace since September 2007. This in turn contributed to a significant increase in workforce numbers, pointing to continued optimism and rising expectations for the future.’
UK services PMI is scheduled for publication tomorrow and if the gauge comes in above the 62.0 level forecast the GBP/INR pairing could enjoy further gains.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 102.3080 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.4954 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.3200 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.8375 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.9206 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.5935 >
(Correct as of 10:30 GMT)
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