The Indian Rupee has strengthened against the US Dollar, climbing by 30 paise in morning trading as the Reserve Bank of Indian revealed that it was planning to take further action to ease the country’s liquidity situation.
The US Dollar to Indian Rupee Exchange Rate was in the region of 62.2280 as of 11:30am GMT
The Rupee softened slightly as growing concerns over a possible shut down of the US Federal government sent investors to seek shelter in safe havens. The ongoing uncertainty over when the Federal Reserve will choose to begin tapering its monetary easing programme is also muting market movements.
“The RBI is closely and continuously monitoring liquidity conditions and will take actions as appropriate, including open market operations, to ensure that adequate liquidity is available to support the flow of credit to productive sectors of the economy,” the Central Bank said in a statement.
The RBI plan to boost liquidity includes taking more action such as purchasing bonds to ensure that there is a big enough supply of money for credit flows which in turn is hoped will help the Rupee to strengthen.
The Indian Rupee has managed to halt its rapid declines to a more stable position
Since new RBI governor Raghuram Rajan took the hot seat the Indian Rupee has managed to halt its rapid declines to a more stable position. In August the currency tumbled to record lows on more than one occasion. Since Rajan took office however the Rupee has recovered by almost 10%.
The next key piece of data for the Rupee is released on the 27th and is expected to show that India’s current account deficit narrowed in the second quarter of the year. If true then the Rupee is likely to find support.
Current Rupee (INR) Exchange Rates
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.0528 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.0446 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.2280 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.4538 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.5771 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.2990 <
(Correct as of 11:30am GMT)
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