The Indian Rupee is trading close to a two-week high against the Pound and the US Dollar after investors increased their bets that the Federal Reserve will delay tapering its $85 billion per month quantitative easing programme.
The Pound has weakened ahead of the release of the minutes for the Bank of England’s November policy meeting on Wednesday. The UK currency also fell after the Organisation for Economic Co-operation and Development cut its forecasts for global economic growth. The currency fell after market sentiment took a knock at the news.
Uncertainty as to whether the Fed will push back tapering its monetary easing programme has seen currencies like the Rupee make strong gains as the US Dollar was broadly weakened. The ‘Greenback’ remains under pressure after dovish comments by Federal Reserve Chairwoman Nominee Janet Yellen last week were seen as cementing the view that the bank will continue with its easing programme unless the nation’s economy shows signs of a robust recovery.
“The Rupee remains the most attractive Asian currency from an outright carry perspective. While near-term risks are for Dollar support, we suspect the market will remain happy to sell rallies in most Dollar-Asia pairs,” said Westpac Banking Corp’s global strategy team.
As long as speculation continues that the Fed will delay tapering the Rupee will continue to receive support. Wednesday could send the Rupee lower if US retail sales data comes in stronger than expected. Any positive signs for the US economy will increase expectations that a cut will occur, negative data will have the opposite effect.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.7300
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.7328
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.9511
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.3710
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.6937
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.3345
Correct as of 14:30pm GMT
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