The Indian Rupee made gains against the US Dollar after the Indian Central Bank tightened its restrictions on gold imports as it attempts to curb the nation’s large current account deficit, and as expectations of a tapering to the US Federal Reserve’s monetary easing programme fell.
“The Rupee should gain against the Dollar,” said Andy Ji, a strategist at Commonwealth Bank of Australia. The bouts of strength ‘will not be significant and sustained,” he said, adding that gold curbs will have a ‘muted’ impact on the deficit given oil prices are still rising.
Monday’s weaker than expected data for home sales in the United States boosted the case for the US Central Bank to maintain its stimulus programme which drove demand for emerging market assets such as the Rupee. Demand for gold is set to increase in August as Indian consumers buy gold gifts during the country’s festival season.
Jayesh Mehta, Bank of America said, “The central bank has now taken fiscal measures to stem the rupee volatility and to address fiscal concerns by putting further restriction on gold imports. However, month-end dollar demand continues from the OMCs. The range for the day is seen between 59.30-59.70/USD.”
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.8506 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.2434 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4250 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.6662 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.9973 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.4121 >
(Correct as of 10:30 GMT)
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