With Indian markets closed yesterday for the Diwali festival the Rupee’s movement was limited, and as the local session began the Indian asset started out weaker against the US Dollar.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 99.0247 as of 12:00 GMT
While Dollar demand from importers continues to pile downside pressure on the Rupee, the emerging market asset extended losses against the ‘Greenback’ and Pound last week as a measure of manufacturing output for India showed contraction for a third month.
However, although today’s HSBC services PMI for India came in below the 50 mark separating growth from contraction for a fourth month, the rate of contraction eased in October with output falling more slowly.
The gauge rose from 46.1 to 47.5 instead of dropping to 44.6 as expected.
The following comment, made by HSBC economist Leif Eskesen, accompanied the figures; ‘The continued contraction in service sector activity is testament to the dampening effects of the heightened macroeconomic uncertainty, which is making businesses and consumers more cautious about spending. While activity readings may be stabilising, a notable recovery is not on the cards for a while still. Despite the weak growth backdrop, the RBI has to keep its inflation guards up to address the lingering inflation pressures.’
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 99.4979
The Rupee fluctuated after the data was published, gaining on the US Dollar and a broadly softening Euro but slipping against a bolstered Pound.
The Pound advanced on all of its most traded currency rivals as the UK services sector expanded strongly and an independent economic institute upwardly revised its growth forecasts for Britain.
According to Jeremy Stretch; ‘This underlines the resilience of the UK economy. This is supportive for Sterling.’
However, the Rupee could extend its advance against the US Dollar in the hours ahead if the US ISM non-manufacturing gauge falls from 54.4 to 54.0 as predicted.
With additional Indian economic data thin on the ground for the rest of the week, further Rupee movement is likely to result from US developments.
Current Rupee (INR) Exchange Rates:
< Down > Up
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.0247 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.1720 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.6600 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.6300 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.1982 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.1162 <
(Correct as of 12:00 GMT)
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