Indian Rupee to US Dollar (INR/USD) Exchange Rate Falls to 1-Month Low
As the week continued the Indian Rupee to US Dollar (INR/USD) exchange rate fell to a four-week low. Although Indian data was lacking, the emerging market asset softened as local investors sold the US Dollar.
If tomorrow’s Federal Open Market Committee meeting minutes are hawkish, the Rupee could extend declines.
Earlier…
At the start of a fresh week of trading the Indian Rupee to US Dollar exchange rate advanced by five paise.
The Rupee benefited from exporters selling the US currency. Reduced US consumer inflation expectations were also responsible for some ‘Greenback’ softness.
With economic reports for India in short supply this week, movement in the INR/USD pairing will be occurring in response to global economic developments.
For example, several pieces of news from the US have the potential to cause Rupee fluctuations.
Investors will be paying particular attention to the publication of the Federal Open Market Committee’s policy meeting minutes and US inflation figures as these reports could offer some guidance regarding the timing of the first Federal Reserve interest rate increase.
The USD/INR exchange rate hit a low of 61.6700
Pound Sterling to Euro (GBP/EUR) Exchange Rate Drifts below 1.25
After slumping by the most in 20 months last week in response to the Bank of England’s inflation report, the Pound Sterling to Euro (GBP/EUR) exchange rate continued trending around the 1.25 level as a fresh week of trading got underway.
While Pound movement may be limited on Monday due to a lack of market-moving UK data, the GBP/EUR exchange rate could fall below 1.25 as the week progresses.
Demand for the Pound will be undermined if the UK’s Consumer Price Index shows another slowing in price gains. The CPI came in at 1.2% in September and the BoE envisages inflation slowing to below 1% in the near future.
The German/Eurozone ZEW economic sentiment surveys may also have an impact on GBP/EUR trading.
Of course, investors will also be looking ahead to the publication of minutes from the Bank of England’s latest policy meeting.
The GBP/EUR exchange rate was trending in the region of 1.2513
However, as trading progressed the Pound to Euro (GBP/EUR) exchange rate did briefly fall below the 1.25 level. If tomorrow’s ZEW economic sentiment survey’s for the Eurozone and Germany show an improvement in confidence, the Euro could push higher as the week progresses.
US Dollar to Pound Sterling (USD/GBP) Exchange Rate News: US Dollar to Strengthen Further?
An impressive University of Michigan Confidence index helped the US Dollar cement gains on Friday and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending around a 14-month high.
The ‘Greenback’ did lose a little ground after US Consumer Inflation Expectations fell, but the belief that the Federal Reserve will be increasing interest rates before the Bank of England is likely to keep the currency trending higher.
One US economist recently asserted that the US Dollar’s strength could persist and the currency could push higher still in the near future. John Mauldin asserted that the ‘Greenback’ will ‘get a lot stronger than anyone can imagine. We are going to be trading stronger against nearly every currency’.
Today’s US Industrial/Manufacturing production stats could have an impact on the US Dollar.
The GBP/USD pairing shed an additional 0.2% over the course of trading as investors focused on the dovish inflation-related comments issued by Bank of England Governor Mark Carney and the central bank’s chief economist Andy Haldane.
The US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6401
