Italian elections push Rupee from week-high against US Dollar.
The US Dollar Exchange Rate was in the region of 54.1350 against the Indian Rupee as of 10:09 am
After achieving a week-high against the US Dollar yesterday the Rupee, along with most other riskier currencies, fell back as investors turned to safe-haven assets in the wake of political upheaval in Italy.
Although Pier Luigi Bersani, the leader of the Democratic Party and an advocate for upholding the austerity measures implemented by current Italian Prime Minister Mario Monti, gained control of the lower house he was unable to take charge of the Senate. With rival (and disgraced former PM) Silvio Berlusconi demanding a recount the possibility of a hung parliament is a very real threat.
As industry expert Annalisa Piazza asserts: ‘A hung parliament would be a guarantee of paralysis both in terms of economic program and structural reforms. Such a scenario would be the worst-case outlook’.
Similarly, after the inconclusive results of the election were publicised the deputy head of the Democratic Party stated: ‘This possible outcome would have very consequences for Italy at the European level. Based on these projections, more than half of Italians expressed a vote against austerity, against the Euro, against Merkel.’
Unsurprisingly this election has triggered a revival of concerns regarding the economic recovery of the Eurozone, and investors are putting their faith in more reliable assets during these indecisive times.
As a result the Rupee fell to 54.0450 Rupees per Dollar.
Losses in the Rupee are likely to be tempered prior to the Indian Finance Minister Palaniappan Chidambaram presenting Parliament with the annual budget on Thursday.
As the chief manager of Mumbai’s Federal Bank comments; ‘We are seeing largely safe-haven Dollar strength. The Rupee is unlikely to see too much weakness before the budget.’
Industry experts are widely expecting Chidambaram to announce measures for containing India’s fiscal and current-account deficits.
Current INR Exchange Rates
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trading at 70.7772
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading at 54.1350
The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is currently trading at 55.5536
The British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading at 82.1196
These exchange rates were correct as of 10:09 am
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