The Indian Rupee remains trading higher against the US Dollar due to the American currency continuing to receive a kicking as a result of the ongoing government shutdown and fears over the increasing debt ceiling deadline.
The markets unease over the situation in the US was highlighted after the Rupee continued to be supported despite the release of the worst HSBC Services Purchasing Managers Index in four years. According to the Markit compiled data, activity in India’s service sector declined at its quickest pace in more than four years, suggesting that the Indian economy has long way to go before it can shake off its economic slowdown.
The data showed that activity slumped to 44.6 in September, down from the 47.6 recorded in August and its weakest level since April 2009. The figure is the third consecutive month in a row where it has come in under the 50 mark which indicates expansion.
“Service sector activity contracted further in September … as tighter financial conditions and heightened macroeconomic uncertainty weighed on growth,” said Leif Eskesen, chief economist for India at survey sponsor HSBC.
As investor attention remains firmly focused on the USA speculation is growing that the country’s Federal Reserve will choose to delay tapering its monetary easing programme. A move that is damaging to the US Dollar but beneficial to currencies such as the Rupee.
Against the Pound the Rupee climbed higher by 0.91% as Sterling came under pressure as investors opted to sell off their holdings of the currency in a bout of profit taking.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 98.9565 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.6275 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.4367 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.9539 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.9924 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4539 <
(Correct as of 11:00 am GMT)
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