Although the US Dollar has broadly softened as a result of the likelihood of the Federal Reserve tapering stimulus declining, the Rupee still fell modestly against its US counterpart in early trade.
The US Dollar to Indian Rupee Exchange Rate was in the region of 59.4250 as of 10:30 GMT
Demand for the ‘Greenback’ increased among importers as a result of a weak opening in the domestic equity market.
Ever since hints that the US Federal Reserve may begin reining in easing first emerged, commodity-driven currencies like the Rupee have been badly hit.
The Indian asset weakened to record lows against its US counterpart, but some industry experts have asserted that the worst may now be over for the Rupee.
It is hoped that the unusual steps taken by the Reserve Bank of India last week in order to temper the currency’s volatility may begin to have a notable effect, while concerns regarding the impact of reduced US easing recede.
Last week the RBI opted to raise short term borrowing rates and cap the overall borrowing limit from the repo window for banks. Bonds were also sold over the open market. Consequently, according to Harihar Krishnamoorthy: ‘The worst is over for the Rupee as volatility has backed off and clear stability is seen in the market […] The Rupee has not gone beyond 60 to the Dollar [since the RBI intervened].
The USD/INR exchange rate hit a low of 59.2800
Conversely, another industry expert asserted: ‘The RBI will continue to support the Rupee as they have been doing and a 58.50 level seems to be a good support for the unit. […] This is just a beginning. Some more measures are required.’
The next piece of influential economic news for India, the RBI’s rate decision, is scheduled to take place on July 30th.
Until then movement in the USD/INR pairing is most likely to be driven by US news, including today’s existing home sales figures.
The Rupee also dipped against the British Pound as the European session began. The GBP/INR pairing was boosted by comments relating to potential tax reductions in the UK.
Current Rupee (INR) Exchange Rates
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 90.8506 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 78.2434 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.4250 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.6662 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 46.9973 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 57.4121 >
(Correct as of 10:30 GMT)
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