19 Sep 2013
Indian Rupee on track to 60.00; RBI Governor breathes sigh of relief
FXstreet.com (Barcelona) - The Indian Rupee is strengthening against a battered USD, allowing the exchange rate to move further away from its all time high near 70.00, to currently trade at 61.65 from 63.50, closing level on Wednesday.
Bernanke eases pressure to the RBI
The FOMC decision not to taper has undoubtedly spurred a frenzy of selling towards the US Dollar, indirectly benefiting EM currencies, and making the first policy meeting by new RBI Governor Mr. Rajan - due on Friday - slightly more comfortable, even deciding to over turn some of the recent emergency liquidity-tightening measures.
USD/INR to find more sellers near term
According to IFR Markets Editor Sonali Desai "While Rajan's bold opening gambit clearly helped the INR, it's also gained from more supportive external factors - the easing of Syria tensions & Summers pulling out of the Fed race. Worries about India's twin deficits & a renewed rise in inflation won't lie dormant for long." The USD/INR should remain heavy near term.
Bernanke eases pressure to the RBI
The FOMC decision not to taper has undoubtedly spurred a frenzy of selling towards the US Dollar, indirectly benefiting EM currencies, and making the first policy meeting by new RBI Governor Mr. Rajan - due on Friday - slightly more comfortable, even deciding to over turn some of the recent emergency liquidity-tightening measures.
USD/INR to find more sellers near term
According to IFR Markets Editor Sonali Desai "While Rajan's bold opening gambit clearly helped the INR, it's also gained from more supportive external factors - the easing of Syria tensions & Summers pulling out of the Fed race. Worries about India's twin deficits & a renewed rise in inflation won't lie dormant for long." The USD/INR should remain heavy near term.