Although last week’s disappointing US employment data caused the ‘Greenback’ to broadly soften, the Rupee still closed the session at a fresh record low of 61.10 against its American counterpart.
The US Dollar to Indian Rupee Exchange Rate was in the region of 60.9050 as of 11:40 GMT
Despite the measures taken by the Reserve Bank of India to bolster the Rupee over the past few weeks, the emerging market currency continues to suffer from persistent softness.
Last week one industry expert noted that the Rupee ‘started the session on a weaker note owing to strength in the Dollar and weak Asian currencies. Even a falling Euro continued to put pressure on the Rupee.’
However, with investors expecting the repercussions of Friday’s US non-farm payrolls report to extend to trade today there are hopes that the Rupee could strengthen.
As another unnamed official observed: ‘US jobs data has not come out well. So we see the Dollar weakening again. Chances are that the Rupee will strengthen again on Monday.’
The USD/INR exchange rate hit a high of 61.0200
Well, as trade began on Monday the Rupee was modestly stronger against the US Dollar. Although the currency went on to trim its initial advance it continued to trade below 61 Rupee per Dollar ahead of the publication of the US ISM non-manufacturing composite for July.
It is expected that the US gauge will advance from 52.2 in June to 53.1 in July. A surprising result could trigger USD/INR movement.
Meanwhile, the Rupee weakened against a broadly stronger Pound as the British currency was boosted by better-than-forecast UK services PMI.
The UK services sector achieved a six-year high last month, boosting the nation’s economic outlook and supporting Sterling.
The Rupee was little affected by a HSBC report showing that India’s Services PMI dropped from 51.7 to 47.9 in July.
Given the issues which the weak Rupee has exacerbated in recent weeks, investors will be looking ahead to next week’s WPI inflation rate report for the nation.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 93.5744 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 80.8829 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 60.9050 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 54.2852 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 47.3467 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.5549 <
(Correct as of 11:40 GMT)
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