Indian Rupee (INR) Exchange Rate: Rupee Hits One-Week High against the US Dollar
While the Crimea situation is hardly resolved, the comparatively subdued response to Sunday’s referendum saw investors turn to higher risk assets and currencies like the Indian Rupee were able to strengthen.
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The Rupee has been steadily gaining on peers like the US Dollar since Friday and the release of surprisingly positive Indian wholesale price data.
Last month the nation’s wholesale-price gains slowed to the lowest for nine months.
India’s consumer prices also rose by the smallest amount for two years.
As Mumbai-based trader Vikas Babu commented; ‘The momentum has been positive for the Rupee amid good data. I expect a status quo at the Indian central bank’s policy review after the recent rate hikes.’
The Rupee was able to approach a one-week high against the US Dollar as investors speculated that India’s assets would be in demand with overseas buyers as the nation’s inflation pressures ease.
The currency was also supported as Goldman Sachs Group Inc stated that the country’s elections could encourage stocks to climb and during local trading India’s SENSEX (the nation’s shares index) hit a historic high.
Indian data is limited until Friday, when the nation’s foreign reserves, bank loan growth and deposit growth figures are released.
However, Rupee fluctuations may occur today in response to US inflation data.
Economists have forecast that US consumer prices increased by 0.1 per cent in February, month-on-month, and were up 1.2 per cent on the year.
The US building permits and housing starts reports may also have an impact on the ‘Greenback’s relationship with the Rupee.
The British Pound is currently trading against the Rupee in the region of 101.4440.
The US Dollar is currently trading against the Rupee in the region of 61.0100.