The US Dollar to Indian Rupee (USD/INR) exchange rate advanced as 2015 was in its infancy and positive US data supported the case in favour of a sooner-rather-than-later interest rate increase from the Federal Reserve.
US Dollar to Indian Rupee (USD/INR) Exchange Rate Strength Predicted
Before the close of 2014 the US Dollar to Indian Rupee (USD/INR) exchange rate rallied as a result of upbeat US reports and the subsequently mounting odds of the Federal Reserve hiking borrowing costs.
Although US initial jobless claims were shown to have increased by more-than-expected in the week ending December 27 on New Year’s Eve, over the course of 2014 as a whole, applications for unemployment benefits dropped to their lowest level for 14 years.
Positive fundamentals, like this US labour market indicator, up the odds of the Fed adapting fiscal policy in the next couple of months.
Factors like increased Dollar demand are also forecast to cause further weakness in the Rupee.
In the opinion of industry expert Pramit Brahmbhatt; ‘Rupee is expected to depreciate as Dollar demand from banks and oil importers would further hurt the Rupee. Investors will trade cautiously ahead of US data due for the day. Rupee is expected to trade in a range of 63.0-63.70 Rupees to the Dollar today.’
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a high of 63.4875
However, the Rupee was able to claw back some of its recent losses on Friday following the publication of an unexpectedly strong HSBC Manufacturing PMI report for India.
The nation’s manufacturing gauge came in at 54.5 in December, up from a previous reading of 53.3 in November and defying expectations for a decline.
HSBC economist Pranjul Bhandari said of the report; ‘Manufacturing activity momentum accelerated to a two year high in December, led by a healthy increase in new orders from both at home and from abroad. A steep rise in new orders from the consumer sector more than offset a slowdown in new order growth from investment goods. In our view, a rise in the latter is critical for a meaningful pick-up in economic growth.’
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a low of 62.9500
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was little changed after the Indian data was published, trending around the 98.1120 level.
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast
Next week the Indian report with the most potential to inspire Rupee movement is the nation’s Services PMI.
The measure of the services sector is believed to have risen from 52.6 to 52.8.
Of course, additional US Dollar to Indian Rupee (USD/INR) exchange rate volatility is on the cards today as the US publishes both Markit and ISM manufacturing reports and construction spending figures.
Upbeat ecostats would give the ‘Greenback’ a boost before the weekend.
The US Dollar to Indian Rupee (USD/INR) exchange rate fell to a low of 63.2400
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trending in the region of 63.2900
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 98.3170
The Euro to Indian Rupee (EUR/INR) exchange rate is currently trending in the region of 76.2710
