The Rupee has hit its highest level in 3-months against the US Dollar due to pro-risk investors pushing the US Dollar down below the psychologically important 53.00 level.
The US Dollars fall against the Indian currency is its biggest decline since October 18th 2012. The currency has seen a four-week run of gains against the American currency after foreign investors bought more than $4.5 billion worth of debt in January, helping the Rupee gain by 3.3% at the start of 2013.
The new 3-month high was also made possible by Asian Markets being modestly higher on Monday, after it found support from last Friday’s latest jobs and manufacturing data out of the United States. The Dow industrials also helped by hitting above the 14000 mark for the first time since 2007.
The recent strength of the risk-sensitive Euro has also buoyed the Rupees strength. Higher demand for riskier assets has seen investors and traders have more demand for currency’s similar to the single currency.
The Reserve Bank of India aims to support the Rupee’s strength further after it announced that it would implement growth supporting measures. The Bank announced last week that it had lowered its lending rate for the first time in nine months, to 7.75% from 8%.
It is forecast that the rate cut will stimulate investment and therefore lead to a revival in growth which will in turn lead to a further strengthening of the Rupee.
The Indian Rupee to Pound exchange rate is currently trading at 0.01193
The Indian Rupee to US Dollar exchange rate is currently trading at 0.01877
The Indian Rupee to Euro exchange rate is currently trading at 0.01385
The Pound to Indian Rupee exchange rate is currently trading at 83.81293
The Euro to Indian Rupee exchange rate is currently trading at 72.20521
The US Dollar to Indian Rupee exchange rate is currently trading at 53.28761
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