Ongoing concern regarding the likelihood of the Federal Reserve opting to taper its extensive quantitative easing programme within the next few months continued to weigh on the Rupee during local trade.
The US Dollar Exchange Rate was in the region of 56.8750 against the Indian Rupee as of 10:10 am GMT
Although recent disappointing US data has thrown some doubt on the ability of the US economy to maintain its recovery without the current level of asset purchases, yesterday Richard Fisher (President of the Dallas Federal Reserve) stated that he believed US policy makers should be reining in easing.
Rupee to Pound Sterling (INR/GBP) exchange rate also weakened
As one Mumbai-based industry expert comments: ‘Speculation that the Fed’s quantitative easing will be tapered off is bad news for emerging markets. The gold curbs have been spoken about for a while, so the increase has been discounted by the market’.
The Indian currency was also adversely affected by declining Asian stocks, and slipped to 57 despite a mixed bag of US data.
Although one report showed that the US service industry expanded, as did factory orders, another revealed a slowing in the rate of hiring.
A slight upward correction saw the Rupee trading in the region of 56.94 before the European session opened.
The last time the Rupee traded at 57 was in June of last year.
The Rupee also weakened against the Pound but was able to post gains against its bearish Australian and New Zealand counterparts.
Tomorrow’s US non-farm payment report is likely to trigger extensive market volatility. A better than expected result will increase the odds of the Fed reining in stimulus, which would boost the Dollar.
The Rupee could see further declines before the end of the week.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 87.8491 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 74.5872 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.8750 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 53.9241 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.1543 <
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 54.9816 >
(Correct as of 10:10 am GMT)
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