Since Raghuram Rajan took over as Governor of the Reserve Bank of India the central bank has taken decisive steps towards tackling the nation’s deficit and currency woes, such as implementing an unexpected rate increase.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 99.9123 as of 10:50 GMT
In recent weeks the Rupee has strengthened from record lows against its US peer and with the odds of the Federal Reserve tapering stimulus declining, India’s prospects have brightened slightly. For that reason, this month’s rate decision (taking place on Tuesday 29th)will be of particular interest.
With Indian inflation causing major concerns, investors are expecting the central bank to increase its benchmark rate from 7.50 to 7.75.
This expectation caused the Rupee to soften against its peers and prompted this response from economist Radhika Rao; ‘The focus will entirely be on the RBI policy review. Affirming the governor’s stance as an inflation hawk, the vote could swing to a 25 basis point hike in the repo rate. The new approach is likely to be focused primarily on price stability’.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 100.3840
Speculation that the RBI also intends to bring an end to an emergency facility which has been used to sell Dollar’s to state refiners for the past two months weighed on the emerging-market currency further.
Before Tuesday Rupee movement will also be dictated by global developments.
Today the Indian currency extended declines against its British rival during the European session as UK third quarter GDP came in at 0.8 per cent, signalling the nation’s best quarterly growth for three years.
Meanwhile, if today’s University of Michigan confidence index declines from 75.2 to 75 (as predicted by economists) in another indication that the Federal shutdown damaged the world’s largest economy the Rupee could recover ground against the US Dollar.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.9123 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 85.0356 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.6400 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.0751 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.1495 <
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.9838 >
(Correct as of 11:00 GMT)
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