US Dollar to Indian Rupee (USD/INR) Exchange Rate Bolstered by 5.0% Growth in US
During the North American session the US Dollar to Indian Rupee (USD/INR) exchange rate consolidated its earlier gains following the release of a mixed bag of economic reports for the US.
Although the annualised third quarter GDP figure of 5.0% helped the US Dollar advance on the majority of its currency counterparts, ‘Greenback’ strength was a little tempered by a negative US Durable Goods Orders report.
A 3.0% increase in durable goods orders had been expected, but a drop of -0.7% was actually recorded.
US New Home Sales and Personal Consumption Expenditure figures were also disappointing.
That being said, the growth report showed the strongest pace of expansion for ten years and is likely to keep the US Dollar supported.
With growth being this strong, the Federal Reserve is likely to introduce the first increase in borrowing costs in Q2 of 2015. However, if fourth quarter growth shows a marked slowing, it could alter the situation.
Earlier…
The US Dollar to Indian Rupee (USD/INR) exchange rate was trading in the region of 63.3780 on Tuesday as demand for the ‘Greenback’ piled pressure on the Indian asset.
USD/INR Exchange Rate Gains 2.0% in 2014
With Christmas bearing down upon us and traders adopting a cautious stance ahead of the holiday season, exchange rate volatility is likely to be limited.
That being said, the US Dollar to Indian Rupee (USD/INR) exchange rate gained by 0.2% over the course of European trading on Tuesday as month-end demand for the North American asset boosted the US Dollar.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate also advanced despite the UK’s annual third quarter growth data falling short of forecasts.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate achieved a high of 99.0130
The USD/INR exchange rate experienced moderate volatility over the course of 2014 due to a number of factors, including the slide in commodity prices, Federal Reserve rate hike expectations and the global economic slowdown.
The pairing spent much of the year trending in the 60 to 63 Rupee to US Dollar range, with the Rupee losing around 2.0% against the ‘Greenback’ over the course of the year.
In 2013 the Rupee lost around 11.0% against the US Dollar.
According to industry experts Nupur Acharya and Debiprasad Nayak; ‘the policies of the Indian central bank, which allowed banks to accept deposits from overseas Indians and raise overseas loans, helped the Rupee. Declining oil prices reduced India’s import bill while a new pro-business government in New Delhi generated optimism about the economy, helping attract billions of dollars of foreign money and further easing pressure on the currency.’
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast
The US Dollar to Indian Rupee (USD/INR) exchange rate could experience additional movement in the hours ahead as the US publishes its last big run of economic reports before Christmas.
The most influential of the ecostats will be US Durable Goods Orders, which are expected to have surged by 3.0% in November after coming in at 0.3% in October.
Other US data to be aware of includes the nation’s third quarter growth figures, the final University of Michigan Confidence index for December, New Home Sales data and Personal Income/Spending stats.
If these figures come in at or above expected levels (supporting the case for the Federal Reserve increasing interest rates early next year) the US Dollar could extend its gains against the Rupee.
The US Dollar to Indian Rupee (USD/INR) exchange rate is trading in the region of 63.3400
The Indian Rupee to US Dollar (INR/USD) exchange rate is trading in the region of 0.0158
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is trading in the region of 98.6080
The Indian Rupee to Pound Sterling (INR/GBP) exchange rate is trading in the region of 0.0101
