The Indian rupee rose significantly today on Forex as the markets were restoring from the recent sharp fall and the economies of the developing countries started to receive more capital inflows.
The Indian currency gained more than 1% after reaching its half-year bottom rate against the U.S. dollar on March 17. U.S. Federal Reserve lowered the interest rate last week and ruled out the problematic situation with Bear Stearns bank bankruptcy.
The rupee is expected to grow for as long as the investors look positively on the regional stock markets and provide a continuous dollar inflow into the country. Indian monetary authorities might also use the rupees appreciation to fight the rising inflation.
Today USD/INR rate decreased to 39.875 from the previous close at 40.4275 on March 19 (it wasnt traded on 20 and 21 due to the national holidays). According to some currency strategists rupee may reach 39.000 by the end of the month.
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