With Federal Reserve Chairman Ben Bernanke echoing sentiments expressed in the Federal Open Market Committee’s recent policy meeting minutes, by stating that the US will continue to need accommodative easing for the foreseeable future, the US Dollar dropped against the majority of its currency counterparts.
The US Dollar to Indian Rupee Exchange Rate was in the region of 59.8300 as of 11:20 GMT
News from the US saw the Rupee strengthen through the psychological 60 Rupee per US Dollar level and achieve a week-high.
Fears that the US will begin tapering its quantitative easing measures in the months ahead have weighed heavily on emerging market currencies in recent weeks, and only a few days ago the Rupee hit a record low of 61.2125 against the US Dollar despite the Reserve Bank of India taking steps to limit the currency’s volatility.
In response to the Rupee’s movement Mumbai-based industry expert Samir Lodha commented: ‘Bernanke’s comments have led to a Dollar slump and a risk-on rally in the market. The Rupee should stabilise at current levels for now and may strengthen to about 58 or 57 if investors receive more signals that the US stance will be accommodative.’
The US Dollar to Rupee Exchange Rate is hit a low of 59.3200
Earlier this week the RBI attempted to curb the Rupee’s decline by banning banks from proprietary trading in Rupee options and futures, while the Securities and Exchange Board of India doubled the margin requirement on the domestic USD/INR forward trade.
Reports were also circulating that the RBI requested that state-run oil companies buy Dollars from a single bank. Officials asserted that this step had been taken in order to limit the number of people who knew that oil companies were seeking the ‘Greenback’, and so reduce Rupee volatility.
However, if tomorrow’s Indian industrial production and trade balance figures disappoint the Rupee’s rebound could end.
The Rupee declined against the Pound today as the British currency benefited from speculation that recent declines have been overdone.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.3168 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.0766 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.8300 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.1292 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.1424 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.6223 >
(Correct as of 11:20 GMT)
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