The Indian Rupee has declined for a second day in a row, falling to its lowest level in a week due to high demand for the US Dollar and concerns over a slowdown in the global economy.
As commodity prices tumbled last week demand for the safe haven US Dollar has increased, especially among buyers of oil and gold. Due to the high Dollar demand, the Rupee has been unable to make any significant gains even though economists believe that macroeconomic indicators are showing signs that the Indian economy has taken a positive turn.
The Indian economy is expected to grow by 6.4% in the current fiscal year and according to the Prime Ministers Economic Advisory Council the slowdown that had been threatening to take affect has ended, overall the outlook is more optimistic. The main concern for the Indian economy remains the deficit in its current accounts but according to the advisory council data will show that the deficit narrowed to 4.7% in the current financial year after being helped by increased exports and lower imports of gold.
“The demand for Dollars is much higher from importers and oil companies. If we see some foreign investor outflows in May, the Rupee can move towards 55 to the dollar,” said Param Sarma, chief executive at NSP Forex in Mumbai.
The currency will continue to be influenced by external factors over the course of Wednesday due to the Indian financial markets being closed for a national holiday.
Current Indian Rupee (INR) Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 70.4078
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 54.2101
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 55.6982
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 82.7549
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0142
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0184
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0120
These exchange rates were correct as of 10:45 pm
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