The Indian Rupee is on course to make a fifth consecutive week of losses if Fridays US non-farm payrolls data shows a strong improvement. A positive result will increase speculation that the US Federal Reserve will choose to cut back on it quantitative easing programme, a move that will affect emerging market currencies like the Rupee.
The Indian currency could make slight gains throughout the session however as banks and traders sell off their dollars as they prepare for the jobs data release. So far this year foreign investors have bought more the $15 billion more local shares than they sold, easing the pressure on the Rupee from the country’s record current-account deficit.
Rupee to Pound Sterling (INR/GBP) exchange rate weakened again
“The withdrawal of QE by the Fed might not mean an immediate withdrawal of funds from India but is more likely to lead to a stoppage of flows,” said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai. “The currency will remain weak, specifically as reliance of India on global flows continues to be strong due to the large current-account deficit.”
The Fed is buying $85 billion of Treasury and mortgage bonds each month to keep borrowing costs low and bolster the US economy. Nonfarm payrolls data due today may provide an indication of whether the purchases will be reduced.
Speculation over the US Federal Reserve’s movement over QE has been a major driver of the markets this week with speculation over whether they will or won’t cut back its monetary easing affecting all of the major currencies.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 88.9563 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 75.5423 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.1037 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.1948>
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 45.334 >
The Canadian Dollar/Indian Rupee Exchange Rare is currently in the region of: 55.6027 >
(Correct as of 10:10 am GMT)
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