The Indian Rupee recovered some ground against the US Dollar after hitting an all time low in Tuesday’s session. The currency also made gains against the Pound and a number of its other most traded peers.
The Rupee inched higher after the Indian Central Bank announced new plans to attempt to reduce the currency’s rapid decline and offer it some support. The Bank said that it will auction 220 billion Rupees worth of government cash management bills every Monday for the foreseeable future, it failed to say just how many weeks the sales would go on for.
Over the past six months the Rupee tumbled by 12% against the US Dollar and has been badly affected by India’s massive current account deficit.
The Indian government responded to the slide by making a high profile appointment to the Bank of India governors post. Raghuram Rajan, former chief economist at the International Monetary Fund, is due to take over the top job in September.
Several traders have said that they believe the measures don’t go far enough after the currency’s three-month historical volatility rate rose to 11.94% on Thursday, its highest level since 2009, even after the bank restricted banks access to cash, raised interest rates and curbed trading in derivatives.
“Such measures are not enough. The market is awaiting a comprehensive package for reducing the current-account deficit by the end of the week and if those expectations are not met, the pressure on the Rupee may persist” said Standard Chartered PLC currency strategist Priyanka Kishore.
Current Rupee (INR) Exchange Rates:
< Down > Up
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 94.1570 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 81.0790 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.6835 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.6364 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 48.6728 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.6554 <
(Correct as of 14:30 pm GMT)
Comments are closed.