As next week’s US Federal Reserve policy meeting draws ever closer investors are raising their bets that the US Central Bank could choose to taper the $85 billion per month monetary easing programme that has bolstered emerging and commodity based currencies.
Against the Pound the Rupee dropped so that GBP/INR is trading above the 100.500 rate. Against the US Dollar the currency snapped five days worth of gains after the US Congress agreed to a budget for next year. The move removes the threat of a repeat of the debacle that occurred earlier in the year when the federal government was forced to close as Republicans and Democrats bickered over spending.
President Barrack Obama said of the deal; “This agreement doesn’t include everything I’d like, and I know many Republicans feel the same way, that’s the nature of compromise. But its a good sign that Democrats and Republicans in Congress were able to come together and break the cycle of short-sighted, crisis driven decision making to get this done.”
Investors had been concerned that there would be a repeat of the government shutdown on January 15th. Now with a deal agreed it now seems more likely that the Fed’s policy makers will announce cuts to its monetary easing programme.
Also weighing upon the Indian Rupee was the release of data earlier in the session which showed that the nation’s balance of trade was weaker than economist forecasts. It came in at $-9.23 billion compared to the forecasted figure of $-9.1 billion. Despite that it was an improvement on the previous months figure of $-10.55 billion.
The Rupee is likely to see movement on Thursday as Industrial and manufacturing production data is released. A plethora of US data is also due for release and will give investors a better picture of the health of the world’s largest economy.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.4800
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.3628
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.2919
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 55.8136
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 50.5709
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.8415
(Correct as of 11:10 am GMT)
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