The US Dollar to Indian Rupee (USD/INR) exchange rate hit a low of 60.3600 on Friday as foreign capital inflows remained sustained and investors adopted cautious positions prior to today’s highly anticipated gathering of central bankers.
In a few hours time all eyes will be directed toward the Jackson Hole Symposium in Wyoming.
The three day conference offers global central bankers and Finance Minsters a chance to discuss economic policy in a comparatively relaxed environment.
According to industry expert Diane Raley; ‘The primary audience for the Jackson Hole economic symposium has always been central bankers. This year’s symposium focuses on labour markets and the audience composition is designed to be a complement to this important public policy discussion and debate.’
Federal Reserve Chairwoman Janet Yellen is scheduled to speak at the conference and her comments will be put under the microscope.
A hawkish bent to her remarks could push the US Dollar higher against the Indian Rupee, but if she reverts to dovish form the Rupee could rally against the ‘Greenback’ before the weekend.
However, some industry experts are anticipating volatility for the Rupee in the near future.
Recently the new Indian Government, headed by Prime Minister Narendra Modi, attempted to increase the limit on foreign insurance for investment but the action was put down by the opposition – undermining confidence in the government’s mission to improve India’s economic outlook.
In the view of currency researcher Paul Mackel; ‘The Rupee is facing greater headwinds. The risks are that the pace of reforms doesn’t meet expectations, and that cross-market volatility could suddenly pick up because of geopolitical risk or the uncertainty surrounding the Fed.’
The US Dollar to Indian Rupee (USD/INR) exchange rate achieved a high of 60.5300
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate softened on Thursday in response to the UK’s below forecast retail sales figures.
Annual sales growth was shown to have fallen to an eight-month low in July, causing Forex strategist Tony Wilson to note; ‘The Pound is lurching back towards the holiday weekend having taken a small step forward and two big strides back. These surprisingly weak retail sales, coming so soon after the news that UK inflation has sunk back to just 1.6%, have convinced many that far from being about to pull the interest rate trigger, the Bank of England will put the safety catch back on. Wednesday’s Sterling rally is fast becoming a distant memory as the Pound slumps back towards the levels recorded on Tuesday – when it dipped to its lowest rate against the Dollar since April.’
The GBP/INR exchange rate continued trading in a weaker position on Friday, shedding over 0.2% over the course of the local session.
US Dollar to Indian Rupee Exchange Rate Forecast
Next week the only Indian economic report to be aware of is the nation’s GDP data for the second quarter. Annual growth of 4.9% has been forecast following expansion of 4.6% in the first quarter.
Of course volatility in the USD/INR exchange rate will also be generated by US news, including Markit Composite and Services PMI, New Home Sales figures, the Dallas Fed Manufacturing Activity Index , US Durable Goods Orders, the US House Price Index, US Consumer Confidence figures, MBA Mortgage Applications data, second quarter growth figures, Initial Jobless Claims and Continuing Claims data, Pending Home Sales, and Personal Income, Personal Spending and Personal Consumption reports.
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trading in the region of 60.4825
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,100.3200,
US Dollar,,Indian Rupee,60.4825,
Euro,,Indian Rupee,80.3130,
Australian Dollar,,Indian Rupee,56.3800,
New Zealand Dollar,,Indian Rupee,50.8740,
[/table]
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