With some investors considering the Rupee’s recent three-day decline to be too rapid, the Indian currency rose modestly against the US Dollar today after falling to its lowest level for almost a year on Wednesday.
The US Dollar Exchange Rate was in the region of 56.1900 against the Indian Rupee as of 11:00 am GMT
The Rupee strengthened to 56.1400 before a downward correction saw it trading in the region of 56.18.
In recent days the currency has been under pressure as positive US data has led investors to speculate on the likelihood of the Federal Reserve reducing its present level of easing in the near future.
According to forex expert Naveen Raghuvanshi: ‘There are technical factors involved in today’s move. The Rupee is likely to stay range bound today, and the longer-term outlook will be determined by how the global situation plays out.’
Bloomberg News has stated that the 14-day relative strength index is 7.6 points above the 70 threshold, suggesting that the Rupee could advance.
However, if this afternoon’s key US data releases (which include initial jobless claims, GDP and pending home sales figures) add to the more positive economic outlook the US has been enjoying in recent weeks (and so fuel speculation that the Federal Reserve will soon begin to pare back its current level of easing) the Dollar could become bullish – potentially pushing the Rupee down as it advances.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 85.2664 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 72.9113 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 56.1900 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.2602 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.4914 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 54.2621
(Correct as of 11:00 am GMT)
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