The Indian Rupee hit its highest level in two-weeks yesterday meaning that the Rupee has now posted two consecutive months of gains against the US Dollar.
The strengthening comes as the government reduced a levy on overseas investments in local bonds to encourage capital inflows. Government bonds also advanced. The so-called withholding tax, charged on interest income earned by foreigners on rupee-denominated debt, will be reduced to 5% from 20%, Finance Minister Palaniappan Chidambaram said in parliament on Monday. The move is set to boost inflows into the nation’s debt market.
“The withholding tax cut is being seen as a positive by markets. I think we can see 53.50 levels this week,” said Uday Bhatt, a dealer with UCO Bank.
“A 25 basis point cut in rates on Friday is discounted by the market, so the tone will be key in providing further direction,” he added.
The currency was also supported by gains in regional shares and currencies as Asian shares advanced thanks to an increase in investor appetite bolstered by expectations that the US Fedral Reserve will choose to maintain its quantitative easing programme and the European Central Bank will cut interest rates on Thursday.
The Rupee has also made gains against the majority of the major currencies including the Euro and Sterling.
Current Indian Rupee (INR) Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 70.8135
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 53.7116
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 55.6183
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 83.4960
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0141
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0186
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0119
These exchange rates were correct as of 10:25 am
Comments are closed.