The US Dollar in Indian Rupee (USD/INR) exchange rate was trending in the region of 60.1025 on Wednesday, off the day’s highs of 60.2400 but with the potential to advance considerably once the day’s major US reports are published.
A lack of economic data for India and month-end demand for Dollars among importers was keeping the Rupee fairly static against its US rival for much of the local session.
According to one Indian publication, the US Dollar’s ‘gains against other currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit in the morning trade.’
The USD/INR exchange rate is in line to record its fourth day of gains and could climb notably higher if today’s US data matches or exceeds estimates.
Yesterday the Rupee softened against the ‘Greenback’ after a gauge of consumer confidence for the US came in far above anticipated levels.
In the latest sign that the US economy is getting back on track, the Conference Board Consumer Confidence Index rallied to 90.9 in July from a positively revised 86.4 in June.
The reading was the most impressive since before the onset of the global economic crisis in the latter half of 2007.
A Conference Board representative said this of the report; ‘Recent improvements in consumer confidence, in particular expectations, suggest the recent strengthening in growth is likely to continue into the second half of this year.’
On Wednesday the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending 0.15% lower.
The pairing hit a low of 101.7000 amid a quiet European trading session.
US Dollar to Indian Rupee Exchange Rate Forecast
Later today the US will release a stream of influential economic reports.
Firstly, the ADP Employment Change figure will be published. This measure of employment is expected to show that the US economy added 230,000 jobs in July, less than the more than 280,000 positions added in June but still a strong result.
If the result comes in higher than forecast levels, Friday’s US Non-Farm payrolls figure could also surprise positively.
Also today the US is scheduled to release its second quarter growth figures. After recording dismal contraction of -2.9% in the first quarter there are hopes that the world’s largest economy expanded by 3.0% in the second quarter on a year-on-year basis.
Some industry experts believe that even stronger expansion might be on the horizon.
If that proves to be the case the odds of a US interest rate increase will climb and the appeal of the emerging-market Indian Rupee will fall.
While economic reports for India are also lacking tomorrow, some Rupee movement may be caused by Friday’s HSBC Manufacturing PMI figure for July. The measure of manufacturing came in at 51.5 in June, above the 50 mark separating growth from contraction.
Another positive result could lend the Rupee support.
UPDATED 09:45 31 July, 2014
US Dollar to Indian Rupee Exchange Rate Holds Gains after GDP
The US Dollar to Indian Rupee exchange rate maintained its stronger position following the release of impressive second-quarter growth figures for the world’s largest economy.
The growth data detailed annualised quarterly expansion of 4.0% – a full 1.0% higher than anticipated.
Although the Federal Open Market Committee was a little dovish with its policy statement, the fact that one member voted in favour of a rate hike did keep the US Dollar trending higher.
The Pound to Indian Rupee (GBP/INR) exchange rate was struggling as a gauge of UK Consumer Confidence unexpectedly declined.
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading in the region of 60.3750.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,101.7870,
US Dollar,,Indian Rupee,60.1050,
Euro,,Indian Rupee,80.5070,
Australian Dollar,,Indian Rupee,56.2620,
New Zealand Dollar,,Indian Rupee,51.1190,
[/table]
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