The Indian Rupee has increased to a two-week high due to optimism that the Indian government will deliver a fiscally disciplined budget for 2013/14 which is attracting more foreign flows into the country.
Investors are hoping that the government will unveil measures to increase investment on Thursday when Finance Minister P.Chidambaram presents the budget for the financial year starting in April. Chidambaram is due to lay out his plans in parliament at 0530 GMT.
A government report released on Wednesday said that India was likely to hit a fiscal deficit target of 5.3 GDP this year despite a significant shortfall in revenue, adding there would be further scope for monetary easing if the government continued with its fiscal consolidation plan.
“INR rose as expectations are for an investor friendly budget and not a voter friendly one. But there was oil and defence demand in the late session which pulled rupee off highs,” said Uday Bhatt, a foreign exchange dealer with UCO Bank.”I expect the rupee to hold in a 53.80 to 54.20 range until the budget announcement tomorrow,” he added.
The speech by US Federal Reserve chairman Ben Bernanke improved the global demand for riskier assets which gave the Rupee a further boost. Bernanke defended the US Central Banks monetary stimulus policy.
Current INR Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 70.3618
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 53.8101
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 54.7992
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 81.2960
The Indian Rupee to Euro (INR/EUR) exchange rate is currently trading at 0.0142
The Indian Rupee to US Dollar (INR/USD) exchange rate is currently trading at 0.0185
The Indian Rupee to British Pound (INR/GBP) exchange rate is currently trading at 0.0123
These exchange rates were correct as of 12:30 pm
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