After battling with the wave of record-breaking lows recorded against the US Dollar over the past few months, the Rupee was finally able to post a reasonable gain against its North American counterpart last week as the Reserve Bank of India welcomed a new Governor.
The US Dollar to Indian Rupee Exchange Rate was in the region of 102.2440 as of 11:10 GMT
The central bank has taken a series of measures in recent weeks in an attempt to restrain the currency’s volatility, to little avail, but Governor Raghuram Rajan is expected to adopt a more hard-line stance.
Rajan, who earned his stripes as one of the International Monetary Fund’s chief economists, is credited with predicting the 2008 global financial crisis back in 2005 with his paper ‘Has Financial Development Made the World Riskier?’
Although overcoming the many socio-economic issues facing India is likely to be a real uphill battle, many believe Rajan is up to the challenge and will lead the nation in a more positive direction.
The Pound Sterling to Rupee (GBP/INR) exchange rate was trading in the region of 65.5300
Some economists are even predicting that with the RBI adopting a more proactive stance, the Rupee could appreciate to 60/61 per US Dollar by the close of 2013.
According to industry expert Dharmesh Kant; ‘In case there is an attempt to retest 65.56 on the Rupee, that should be the final leg of the recent Rupee depreciation in the foreseeable future. My own sense is that the scenario has played out.’
On Friday the Rupee’s modest advance on the ‘Greenback’ was aided by a disappointing US non-farm payrolls report, which dented expectations regarding the Federal Reserve tapering stimulus this month and caused the US Dollar to soften.
However, the North American asset has since recovered much of those losses and if some positive US data is published this week the odds of the Fed reigning in QE will rise again, at the expense of emerging-market currencies like the Rupee.
Any developments in the Syrian crisis will also inspire currency market volatility this week.
Indian economic data to watch out for in the days ahead includes tomorrow’s balance of trade report and Thursday’s industrial production/inflation figures.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 102.2440 –
The Euro/Indian Rupee Exchange Rate is currently in the region of: 86.0711 –
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 65.2400 –
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.1187 –
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.1202 –
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.8577 –
(Correct as of 11:05 GMT)
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