With the safe-haven US Dollar boosted by better-than-forecast domestic data, the Indian Rupee was pushed to within touching distance of a record low against its North American peer.
The US Dollar Exchange Rate was in the region of 59.8700 against the Indian Rupee as of 10:10 am GMT
Yesterday US consumer confidence was shown to have surged from a revised 74.3 to 81.4 in June, smashing expectations for a climb to 75.1.
Meanwhile, US durable goods orders increased by 3.6 per cent in May rather than the 3 per cent forecast. April’s figure was upwardly revised.
Completing the hat-trick of unexpectedly strong US data was New Home Sales, which climbed by 2.1 per cent in May despite predictions for a 1.3 per cent advance.
After the US data was published the US Dollar broadly strengthened, causing the Rupee to soften.
However, some industry experts are warning that the safe-haven US Dollar’s rally could be about to end. As treasurer Harihar Krishnamoorthy comments: ‘Yesterday’s data was very strong, but the Dollar and US yields have climbed too much, too fast, which could actually fly in the face of a recovery. So we might see US policy makers cautioning against expecting a tapering of stimulus too soon.’
The Rupee weakened to 59.815 against the US Dollar
Over the last seven weeks the Rupee has taken a serious beating, weakening from roughly 53 Rupee per Dollar to 59 Rupee per Dollar, and it doesn’t seem that the decline will be reversed any time soon.
According to one industry expert, the Rupee is unlikely to stabilise around its previous levels as the currency’s ‘losses pose significant downside risks to positive economic trends and in turn, portfolio flows. India’s unstable politics and slow pace of reforms add to the downside risks’.
In an attempt to prevent the Rupee weakening beyond the psychological 60 Rupee per Dollar level, the Reserve Bank of India has been selling off the US Dollar in the last two weeks. But there are concerns that such intervention will only continue to be effective if the market believes the Rupee to be undervalued.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 92.0476 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.2098 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.8700 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.6598 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.3862 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 57.1674 >
(Correct as of 10:10 am GMT)
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