Although the US Dollar was supported against several of its most traded peers by the expectation that today’s US manufacturing report will show that the sector enjoyed a rebound, the Rupee was able to climb to an almost two-week high against its safe-haven rival. The emerging-market currency was little changed against the Pound this morning as positive UK news limited Rupee gains.
The US Dollar Exchange Rate was in the region of 59.2270 against the Indian Rupee as of 11:15 GMT
With foreign investors purchasing local shares for the first time in 13 days and speculation surrounding possible inflows from Unilever’s open offer for its local unit, the Rupee briefly strengthened to 58.965 Rupee per Dollar – the Indian currency’s strongest level since June.
Also today it was asserted in a report compiled by Bank of America Merrill Lynch that the Reserve Bank of India is likely to refrain from issuing a rate cut until the Rupee regains stability.
The report argues that the ‘RBI will likely not want to stir controversy by cutting rates until the Rupee stabilises […] As of now, we expect it to defend 60 Rupees per Dollar, as a breach will surely push up expectations towards 63 Rupee per Dollar.’
The report advises that the Reserve Bank must recoup foreign exchange reserves to make the Rupee stable.
The GBP/INR exchange rate hit a high of 90.7501
However, other industry experts disagree with Bank of America Merrill Lynch and have voiced the opinion that a rate cut could actually support the currently volatile Rupee.
With little influential domestic economic news due for release this week, Rupee movement is likely to be largely dependent on news from the US.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.2479 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 77.1507 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.2270 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.3157 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.7854 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.3498 <
(Correct as of 11:15 GMT)
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