Since the Federal Reserve announced its intention to start tapering bond buying in the near future, emerging-market assets like the Rupee have had more ups and downs than the Andes.
After regaining strength in recent days thanks to both the efforts of new Reserve Bank of India Governor Raghuram Rajan and some disappointing economic news for the US, the Rupee posted its most significant decline against the ‘Greenback’ for two weeks yesterday.
The US Dollar to Indian Rupee Exchange Rate was in the region of 63.3000 as of 12:15 GMT
However, while the Rupee was softer against its US counterpart at the opening of local trade, the currency recouped losses as the stock market firmed and the US Dollar fluctuated ahead of the Federal Open Market Committee announcement.
According to an analyst with Kotak Securities Ltd, the ‘Rupee along with most asset classes are on wait-and-see mode with the US FOMC meeting slated for tonight. [If the] Fed does not change the language to dovish and does a taper between 10-15 billion Dollars the Indian Rupee could come under pressure. A range of 61.50 to 64.50 could be seen over this week’.
The US Dollar to Rupee (USD/INR) exchange rate hit a low of 63.0500
The Rupee also slipped against the Pound as the British currency was supported by minutes from the Bank of England’s latest policy meeting. The minutes showed that the central bank’s policy makers are currently of one mind when it comes to maintaining the current level of stimulus.
Although the Rupee could slip and slide today as a result of Fed developments, some analysts are expecting the currency to strengthen in the weeks and months ahead.
A branch of major ratings agency Fitch has put the currency as trading within the region of 59-61 per Dollar before the end of next year.
No matter what happens with the Fed today, additional Rupee movement is all but guaranteed to occur on Friday, when the Bank of India delivers its rate decision.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 101.0000 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.5182 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 63.1600 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.2108 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.0263 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.3630 <
(Correct as of 12:15 GMT)
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