Although the Rupee was slightly softer against the US Dollar in the aftermath of the release of the Federal Open Market Committee meeting minutes, the emerging-market asset was holding its own against the Pound even as the British currency was buoyed by the UK’s optimistic economic outlook.
With the US Dollar in demand among importers the Rupee edged to 62.24 against the ‘Greenback’ but was trading in the region of 102.04 against the Pound having previously weakened to 102.55.
Indian economic news might be thin on the ground today but the Bank of England is scheduled to deliver its rate decision at 12:00 GMT.
Given the upbeat economic data emerging from the UK in recent weeks the BoE is expected to leave interest rates at their current levels and the pace of asset purchases unaltered.
The Pound approached a one-year high against the Euro early in European trading and brushed a two-year high against the US Dollar.
Sterling was also deriving support from the expectation that UK trade figures would show a narrowing in Britain’s goods trade deficit.
The report did indeed reveal that the UK trade deficit narrowed to a five-month low thanks to increased exports to the EU.
However, the GBP/INR pairing was little affected as investors focused on a poll conducted by Reuters news agency.
The survey results forecast a more stable year for the Rupee after the volatility seen over the last twelve months.
The currency strategists questioned see the Rupee trading at 62.0 against the US Dollar in a year’s time as India’s current account deficit checks outflows following the Fed’s tapering of stimulus.
Analysts asserted; ‘We expect a more stable year for the Rupee in 2014. Net foreign institutional investor outflows are unlikely to be as large as in May-August 2013 as the Fed has made it clear that tapering is not tightening, which will help contain rate expectations’.
But while the Rupee might be about to enjoy a more temperate trading climate, the currency’s exchange rate could still fluctuate tomorrow as Indian trade balance, manufacturing production and industrial production figures are published.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 102.0440 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.4036 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.0200 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.0640 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.2202 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.2814 <
(Correct as of 10:20 GMT)
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