The Indian Rupee has softened against the US Dollar, ending the currency’s biggest surge in 40 years as concerns over slowing economic growth in the country and the increasing demand for the Dollar weighed upon it.
The Rupee retreated to 63.35 per Dollar as the markets increase their bets that the US Federal Reserve will begin tapering its monetary easing programme as soon as the next Central Bank policy meeting due to be held on the 17th of September.
The Indian currency had been enjoying a four day long rally which was the strongest recorded since 1973 after the appointment of Raghuram Rajan to the governors position of the Reserve Bank of India. His plans to support the Rupee halted the struggling currency’s rapid decline. Rajan last week announced a plan to provide concessional swaps for banks’ foreign-currency deposits to boost the supply of dollars. This will add $10 billion to the nation’s reserves.
The Rupee also received a slight boost yesterday from data showing that India’s exports rose to a two-year high of 13% in August on account of the improved global economic situation. The Indian trade deficit to fall to a four-month low of $11 billion, and was aided by subdued gold imports.
The Rupee’s losses are expected to be limited as oil prices begin to fall and as demand for riskier assets improved as the likelihood of military action against Syria buoyed higher yielding currencies. The price of crude oil fell by its biggest margin since June 20th yesterday after US President Barrack Obama delayed authorizing military strikes until Syria surrenders its chemical weapons stockpiles to the international community.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.7534
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.0712
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 63.3545
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.8944
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.0890
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.2322
(Correct as of 10:00 am GMT)
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