While the Rupee enjoyed a stronger few days last week as the ‘Greenback’ was adversely impacted by the ongoing Federal shutdown and the government’s subsequent inability to release influential US non-farm payrolls figures, the Indian asset has dropped for the first time in three days.
The US Dollar to Indian Rupee Exchange Rate was in the region of 61.9000 as of 11:05 GMT
Statements issued by the Speaker of the House of Representatives John Boehner, regarding US lawmakers refusal to increase the borrowing limit unless certain conditions are met, saw emerging market assets soften as the Federal shutdown entered its second week.
Although President Barack Obama has asserted that he believes Congress will reach a debt ceiling agreement before the October 17th deadline, some investors fear that foreign investors will limit their purchases of Indian stocks in the run up to it.
As one Mumbai-based trader commented; ‘The equity market is weak amid global concerns and that’s what’s hitting the Rupee. Inflows are essential for India and so sentiment is a bit weak.’
The US Dollar to Rupee (USD/INR) exchange rate hit a high of 61.9250
The Rupee trimmed last week’s five day gain to 1.4 per cent.
However, according to recent reports India is preparing to introduce a plan which would permit increased overseas participation in the local currency futures marker, thereby safeguarding the Rupee against the extreme slides seen earlier in the year.
By easing restrictions on the onshore currency futures market the government hopes to reduce speculative trade in the offshore non-deliverable forwards market, which was the main cause of the Rupee hitting a record low of over 68 Rupee per Dollar in August.
Indian data to focus on this week includes the nation’s trade balance report (due out tomorrow) and industrial production/manufacturing output figures (due out on Friday).
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 99.3126 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 83.9559 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 61.9000 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.1103 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.2139 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.8963 >
(Correct as of 11:05 GMT)
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