Ahead of tomorrow’s Reserve Bank of India rate decision, India’s Prime Minister is scheduled to meet with industry leaders in order to consider the problems of the Rupee’s rapid depreciation and the nation’s mammoth current account deficit.
The US Dollar to Indian Rupee Exchange Rate was in the region of 59.3700 as of 11:00 GMT
Prime Minister Manmohan Singh will be meeting with bankers and industrialists in Delhi.
Although India’s central bank has taken steps to temper the Rupee’s volatility (such as introducing liquidity tightening measures) some industry experts are concerned of the affect such action could have on domestic growth.
The USD/INR exchange rate hit a high of 59.4500
As trade began on Monday the Rupee snapped a recent run of gains against the US Dollar, in spite of the American currency remaining under pressure ahead of the Federal Reserve’s latest policy meeting.
Expectations surrounding tomorrow’s RBI meeting, plus month-end Dollar demand from importers, were largely responsible for the Rupee’s drop against the ‘Greenback’.
The Rupee also weakened against the British Pound, despite UK data showing an unexpected fall in domestic mortgage approvals.
Economists are expecting the RBI to hold its benchmark repurchase rate at 7.25 per cent.
According to one industry expert: ‘We expect the RBI to reinforce that recent liquidity tightening was to shore up the Rupee, rather than cool the economy.’
After tomorrow’s highly anticipated Reserve Bank of India rate decision the next piece of influential Indian data, HSBC/Markit manufacturing PMI, is due out on Thursday.
News from the US will also be a cause of volatility for emerging-market currencies like the Rupee in the days ahead.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 91.4203 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.8849 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.3700 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.9100 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.7838 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.8230 >
(Correct as of 11:00 GMT)
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