The Indian Rupee fell to a new record low against the US Dollar in early morning trading due to it being weighed upon by weak regional and local shares as well as the Indian Central Banks withdrawal of its interventionist policy.
The Rupees decline comes even as other emerging-market currencies have made gains following last week’s weaker-than-expected jobs data out of the United States.
The disappointing data has managed to spur hopes that the Federal Reserve will continue with its bond buying program which has kept the global markets flush with liquidity. Since May the Rupee has devalued by 12% after the Federal Reserve suggested that it may begin to wind down its bond-buying programme as soon as September.
The USD/INR exchange rate hit a high of 61.6843
As stocks and shares fell investor’s resumed their sell off of the Rupee. Traders have blamed the decline on an absence of Central Bank intervention. Foreign investors have been dumping Indian assets over fears that India will struggle to fund its wide current-account deficit if global liquidity tightens.
In recent months the Indian Central Bank had managed to slow down the Rupee’s rapid decline by imposing restrictions on the supply of cash to the banking system in an attempt to make it more expensive to buy Dollars with borrowed Rupees.
According to analysts however these measures have been countered by increased government spending which has diluted the Central Banks efforts to drain cash from India’s banking system.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 94.7697 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 81.8240 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.6843 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.4554 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 48.5722 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4958 >
(Correct as of 11:05 am GMT)
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