As emerging market currencies were bolstered by the decreasing odds of the Federal Reserve tapering stimulus in the months ahead the Rupee strengthened against its American rival.
The US Dollar to Indian Rupee Exchange Rate was in the region of 59.5600 as of 14:20 GMT
After climbing by 0.6 per cent over the last five days, and pushing below the psychological 60 Rupee per Dollar level, the Indian currency is heading for its first weekly advance against the US Dollar since May.
As well as being supported by US news the Rupee was also boosted by the Bank of Japan’s pledge to maintain its unprecedented level of bond-buying.
Additionally, over the last few days the Reserve Bank of India has taken steps to restrain Rupee volatility.
The US Dollar to Rupee Exchange Rate is hit a low of 59.5500
In a report published yesterday analysts asserted: ‘To us, speculative activity is not the problem. Twin deficits, high inflation, and sluggish growth all argue for continued Rupee weakness. We fully expect more measures designed to help slow the move.’
According to official sources, the Indian government intends to meet with high profile bankers and consider selling debt overseas in order to stabilise the Rupee and raise Dollars.
It was also stated earlier this week that the RBI asked India’s oil refiners to buy Dollars solely from the State Bank of India, so that fewer people would know about Dollar demand.
As trade continued the Rupee experienced modest fluctuations as data showed that industrial production in India contracted by 1.6 in May year-on-year despite expectations for a 1.6 per cent gain.
In response to the data one Mumbai based economist stated: ‘The industrial-production data is bad and it’s a surprise that it’s a negative, while consumer price inflation remains high. There is an immediate need to release food stocks to cool down food prices.’
Next week’s inflation rate data for India, as well as the RBI’s rate decision could prompt additional Rupee movement.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 89.9713 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 77.6543 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.5600 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 53.7708 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.9563 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.3685 <
(Correct as of 14:20 GMT)
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