The Indian Rupee has weakened against the Pound and fallen away from a two-week high against the US Dollar after Thursday’s Manufacturing PMI data came in below forecasts, casting doubt on the health of Asia’s third biggest economy.
According to HSBC Holdings Plc and Markit Economics manufacturing PMI report, India’s manufacturing sector expanded by 50.7 in December, down from November’s figure of 51.3. The weaker than forecast data shows that the country is struggling to recover from last year’s economic difficulties that saw the Rupee plummet to a record low.
A figure below 50 indicates contraction whereas a figure above 50 indicates expansion.
“Today’s numbers show that growth remains moderate and struggles to take off due to lingering structural constraints, inflation pressures remain firm and are proving sticky. The Reserve Bank of India may yet again have to flex its muscles and tighten monetary policy to bring down the elevated level of inflation,” said HSBC Chief Economist for India Leif Eskensen.
Sterling’s gains were limited after a manufacturing report for the UK showed that output slowed in December. The Euro too saw gains muted after France’s PMI data came in below that of Greece and raised doubts over the regions second biggest economy.
Friday will see the publication of India’s latest services PMI report which is expected to come in below the 50 level. As a consequence the Rupee is likely to soften further and could make a weekly low against Sterling and the ‘Greenback’.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 102.9000
The Euro/Indian Rupee Exchange Rate is currently in the region of: 85.376
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.2100
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.256
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.916
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.505
(Correct as of 10:50 am GMT)
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