Indian Rupee (INR) Exchange Rate forecast to make biggest weekly gain in a month

The Indian Rupee is on track to make its biggest weekly gain in a month against the US Dollar after the currency received a boost from Dollar selling by Indian banks and exporters as well as increased capital inflows.

So far this week the Rupee has advanced by 0.7% against the US Dollar. The USD to INR pair softened to 60.1900 on Friday.

The Rupee has been able to take advantage of a struggling US Dollar this week. Weaker than expected GDP data out of the US saw the currency fall against the majority of its major peers and slip to a three-week low trough. Investors are choosing to stay on the sidelines as they await the release of key US nonfarm payrolls data due later in Friday’s session.

“This week the Rupee appreciated backed by corporate inflows. Today the currency is expected to depreciate on weak equities but the corporate inflows and exporters selling Dollar may help the Rupee to trade firmer. The range for the day is between 59.80 to 60.80 to the Dollar,” said a trader at Veracity India.

Also supporting the Rupee was the release of data which showed that India’s manufacturing sector growth remained steady in April. Firmer domestic demand countered the effects of a slowdown in export orders.

The HSBC India Manufacturing Purchasing Managers Index came in at 51.3 for April, matching March’s figure and widely matched economist forecasts.

Against the Pound the Rupee declined as the UK currency received support from yesterday’s better-than-forecast manufacturing data and increased speculation that the Bank of England could raise interest rates sooner than forecast.

Indian Rupee (INR) Exchange Rates