INDIA (INR) FOREX MARKET REPORT - 03 JUNE 2014 The Indian Rupee (INR) hits a further low going into its two week decline. The Rupee sunk over the positive data signalling out of the US causing the overall strengthening of the dollar - leading into the dollars four month high against other major currencies. Overall the currency has depreciated by approximately 1% weekly against the US dollar. RBI released monetary policy decisions today, 3 June 2014, where Raghuram Rajan (Indian Governor) decided to hold there purchase rate unchanged at 8% as economists suspected. Prior data releases showed India’s current account deficit had narrowed to 0.2% of GDP in the first quarter.GDP data released on the 30th May 2014 indicated a marginal decline from a 4.7% in 2013 (Q3) to 4.6% in 2013 (Q4). The PMI report revealed a high momentum in the manufacturing sector which helped backup the Asian currency and permitted the pound to soften against the rupee. There is a mixed influence on how the rupee will trade going forward as a negative impact is drawn from importers US dollar demand putting pressure on the rupee and a reflection of data showing weak economic growth while the boost in the manufacturing sector and the narrowing deficit hold on the positive end. The INR weakened by 7 paise against the US dollar over this morning.
Posted on: Tue, 03 Jun 2014 11:57:54 +0000
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