US Dollar to Indian Rupee (USD/INR) Exchange Rate Stronger after Services PMI
The US Dollar to Indian Rupee (USD/INR) exchange rate edged slightly higher on Tuesday following the publication of India’s Services PMI.
The measure of the services sector eased from 52.6 in November to 51.1 in December.
Economist Pranjul Bhandari said of the report; ‘Both activity and new orders in India’s services sector expanded in December, though at lower rates compared with November. All but the Financial Intermediation sub-sector saw an expansion in order books. In our view, growth in Financial Intermediation is key for funding a meaningful pick-up in economic growth. Meanwhile, business expectations grew quickly, led by the Hotels and Restaurants sub-sector. Inflationary pressures from both input and output prices remained modest.’
The US Dollar to Indian Rupee (USD/INR) exchange rate was trading in the region of 63.4200 ahead of the release of the day’s US data.
Although the US reports, including ISM Non-Manufacturing PMI and Markit Services/Composite PMI, failed to achieve forecasts, the US Dollar to Indian Rupee (USD/INR) exchange rate continued trending in a stronger position.
Earlier…
Over the course of 2014 the US Dollar to Indian Rupee (USD/INR) exchange rate advanced by 2.0% as the Federal Reserve concluded its quantitative easing programme and indicated that borrowing costs will be raised in the near future.
The currency pair moved between highs of 63.88 and lows of 58.41 over the course of 2014.
USD/INR Exchange Rate Bullish
The Rupee’s downtrend against the ‘Greenback’ continued on Monday, with the Indian currency shedding 0.2% to fall to 63.39 Rupee per Dollar.
In the view of currency expert Ankur Jhaveri; ‘The Dollar’s strength is impacting Asian currencies across the board. The ECB suggesting quantitative easing has caused more nervousness.’
While the Rupee drifted lower against the US Dollar, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending in a narrow range ahead of the release of the UK’s Construction Output report.
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a high of 63.4500
The Rupee weakness was caused by renewed demand for the US Dollar from local importers and banks.
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast
This week the main Indian report to be aware of is the nation’s HSBC Services PMI, due out on Tuesday.
The index of the services sector is believed to have risen from 52.6 to 52.8 in December.
Expansion would be positive and could support the Rupee, however there are a number of US reports on the horizon with the potential to boost the USD/INR currency pair.
The US Dollar to Indian Rupee (USD/INR) exchange rate fell to a low of 63.2300
Tomorrow the ISM Non-Manufacturing Composite PMI could be responsible for US Dollar to Indian Rupee fluctuations. Investors will also be taking an interest in the Markit Services measure.
This will be followed by the US ADP Employment Change report on Wednesday, plus US trade balance data and the publication of minutes from the Federal Open Market Committee’s (FOMC) most recent policy meeting.
Given that the central bank adapted its interest rate rhetoric at the December gathering, it’s safe to assume that the minutes may be more hawkish than those published in previous months. If that proves to be the case, it will support Fed rate hike speculation and could see the US Dollar to Indian Rupee (USD/INR) exchange rate advance.
As the week progresses US initial/continuing jobless claims and Change in Non-Farm Payrolls stats will be influential.
Another month of strong jobs gains could see rate bets brought forward to the first quarter of this year.
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trending in the region of 63.3400
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 96.9940
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trending in the region of 75.6850
