The Indian Rupee has weakened against the US Dollar and is set to embark on a third consecutive week of declines following the Federal Reserve’s suggestion that it could slow its debt buying programme. The rhetoric has fuelled concerns that foreign cash flows into emerging markets will be reduced as a result.
Federal Reserve Chairman Ben Bernanke told congress on Wednesday that the Central Bank could cut the pace of its bond buying programme in the next few meetings of policy makers if the US economy shows signs of a significant pickup in growth. As a result of the Feds quantitative easing foreign investors have bought $14.5 billion more of Indian shares than they have sold in 2013, an increase of 69% from the previous year.
“Concerns that inflows will be affected if the Fed reduces stimulus are keeping the rupee subdued,” said Paresh Nayar head of money markets and currency at FirstRand Ltd. in Mumbai. “India needs sustained capital flows to offset the shortfall in the current account.”
The Rupee was also weighed down by data that showed that India’s current account deficit reached a record high $32.5billion in the final quarter of 2013.
So far this week the Indian Rupee has weakened by 1.5% and touched its lowest level since the sixth of September.
Current Indian Rupee (INR) Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 71.8961
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 55.5051
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 53.6057
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 83.7563
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0139
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0180
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0119
These exchange rates were correct as of 11:00 am
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