Yesterday’s less-than-inspiring Indian services PMI data kept the Rupee trading lower against a broadly stronger Pound.
In a quiet news day for India, the Rupee has extended losses in response to yet more strong UK data.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 100.2470 as of 11:20 GMT
Overnight the Rupee slipped to an almost one-month low against its US counterpart as a better-than-forecast US ISM non-manufacturing report added to the case for the Federal Reserve tapering stimulus and weakened emerging market currencies.
The expectation that the Reserve Bank of India could restrict direct Dollar supplies to oil refiners also weighed on the Rupee and it breached the 62 Rupee per Dollar level.
Independent sources stated that Dollars are suddenly in demand with state owned banks.
One forex dealer observed; ‘We don’t know why there’s a sudden buying interest. The Reserve Bank will close the Dollar swap window sooner than later. Perhaps Indian banks are building up their Dollar reserves before the exchange rate slides substantially.’
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 100.5150
Meanwhile, the Rupee softened beyond 100 per Pound as advances in UK industrial/manufacturing production boosted Sterling.
The Pound was already trading strongly as a result of yesterday’s encouraging services PMI data, and news that UK industrial production increased by more than forecast in September pushed Sterling higher against the majority of its most traded peers.
After declining by 1.1 per cent in August, UK industrial output leapt by 0.9 per cent month-on-month rather than increasing the 0.6 per cent expected. Industrial production was up 2.2 per cent on the year rather than the 1.8 per cent forecast.
The GBP/INR pairing was also boosted by a separate report showing a ninth consecutive increase in UK house prices.
The next piece of Indian data to look out for, the nation’s trade balance figures, is due for release on Monday.
In the meantime GBP/INR movement could be triggered by the Bank of England’s rate decision and UK trade balance figures.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.2470 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.9949 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.1950 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4053 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.2357 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.6559 >
(Correct as of 11:20 GMT)
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