The Indian Rupee made its biggest loss in a month against the US Dollar and fell close to its lowest level in a week against the Pound as speculation rose that Indian importers increased their purchases of the US currency.
Prior to today’s session the Indian Rupee had been Asia’s best performing currency as it was buoyed by the landslide victory of the Bharatiya Janata Party.
The election victory was the clearest seen in three decades and buoyed investor optimism as the BJP was seen as the party with the best policy’s needed to spur economic growth in India and stamp out corruption.
The Rupees declines as importers bought US Dollars to cover their costs and to pay their bills. A lower domestic equity market as a result of profit taking and the US Dollars recent gains against the Euro abroad also put pressure upon the Rupee.
Against the Pound the Rupee fell along with most other peers as stronger-than-forecast UK retail sales data buoyed Sterling.
Hints that Bank of England policy makers have become more hawkish to the prospect of increasing interest rates also lent support to the UK currency.
The US Dollars gains against the Rupee are likely to remain limited ahead of this evening’s publication of the Federal Reserve’s latest policy meeting minutes. Investors are wary ahead of the release as they await an insight on the Fed’s view of the US economy.
The Euro meanwhile remains weaker as economists expect the European Central Bank to introduce new monetary easing measures at June’s policy meeting.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,99.2390 ,
US Dollar,,Indian Rupee,58.7550 ,
Euro,,Indian Rupee,80.5365 ,
Australian Dollar,,Indian Rupee,54.2027 ,
[/table]
Comments are closed.