US Dollar to Indian Rupee (USD/INR) Exchange Rate Softer on Bets Gains were Excessive
After achieving a 12-year high against the Euro and a 20-month high against the Pound, the US Dollar posted declines against a number of its peers amid bets the currency’s gains were overdone.
The US Dollar to Indian Rupee (USD/INR) exchange rate fell by nearly 0.3% ahead of the release of influential economic reports for both the US and India.
According to industry expert AV Rajwade; ‘After the [US] Dollar, the next strongest currency has been the Rupee. Even the Chinese Yuan has depreciated to some extent against the Dollar, but until the last few days, the Rupee was exactly there where it was, say, in early 2014.’
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a high of 62.7800
Similarly, the Economic Times quoted another industry expert as saying; ‘It’s critical to understand that the Rupee has not weakened, but rather that the Dollar has strengthened. The Dollar is strengthening due to US expectations that the US Fed might raise interest rates. The Rupee needs to be stable in order for the Indian economy to grow, and the RBI is well aware of that. Without a stable Rupee, FII inflows will not be predictable, and without FII inflows, the Make in India project simply will not work.’
Meanwhile, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate edged lower as the Pound was supported by better-than-expected domestic trade data.
The UK’s trade deficit was shown to have narrowed by considerably more than expected in January.
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast – India CPI, US Advance Sales Data Expected to Spark Movement
In the hours ahead a number of factors are forecast to cause movement in the US Dollar to Indian Rupee (USD/INR) exchange rate.
For starters, India is set to publish several influential domestic reports.
The US Dollar to Indian Rupee (USD/INR) exchange rate fell to a low of 62.4800
The nation’s inflation data is due out at 12:00 GMT, with the rate of consumer price gains expected to slow from 5.11% to 5.0% in February, year-on-year.
This report will be followed by India’s Industrial and Manufacturing Production numbers.
The pace of growth in manufacturing and industrial output is believed to have slowed last month. If this proves to be the case, the Rupee could come under pressure.
Of course, the day’s US reports will also have a notable impact on USD/INR trading.
While the US initial jobless and continuing claims figures will be of interest, the nation’s Advance Retail Sales data is considerably more influential.
If consumer spending is shown to have rebounded by more than projected in February, it would support the case in favour of a summer interest rate hike from the Federal Reserve and may see the ‘Greenback’ rally against its peers.
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trending in the region of 62.5800, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.7910, the Euro to Indian Rupee (EUR/INR) exchange rate is currently trending in the region of 66.2700
