The Indian Rupee is heading for its longing running streak in a year as it heads towards a ninth consecutive decline against the US Dollar as the Federal Reserve gets ready to taper its monetary stimulus measures.
So far this week the Rupee has declined by 1.5% to 60.3175 per Dollar
Overseas investors are pulling their cash out of India and other emerging economies as well as cutting their holdings of Rupee bonds in preparation for the Feds tapering. In the first three days of this week alone (1st July) investors withdrew $562 million. In June investors withdrew a record $5.4 billion.
“The worsening funding environment for emerging markets could continue to put currencies which have high current-account deficits, such as the Rupee, under pressure, Capital outflows from debt have had a large impact on the Rupee” Said Tushar Poddar an economist in Mumbai.
Job gains and a rebound in housing are shoring up Americans’ finances and boosting expectations that the economy will gain momentum even after taxes increased and government agencies began to cut spending. Federal Reserve policy makers have said they’ll start to trim bond purchases before the end of the year as unemployment falls.
The Rupee could potentially fall even further on Friday if the latest US jobs data comes in strongly. Economists are expecting the US unemployment rate to decline from the 7.6% recorded in May to 7.5% in June. Payrolls are expected to have grown by 165,000 workers, after a rise of 175,000 in the previous month.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.6199 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 77.8779
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.4413 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.3711 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.4110 >
(Correct as of 12:15 pm GMT)
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