Rupee Down as Risk Aversions Makes Appearance Again

The Indian rupee fell today as optimism caused by last week’s European summit was all but gone from the Forex market and signs of global economic slowdown drove away investors from riskier currencies of emerging markets.

Last two days of this week were very bad for higher-yielding assets. Quinten Bertenshaw, an analyst at Tradition Analytics, said after today’s US non-farm payrolls:

The markets have responded negatively in what appears to be a realization that the economic downturn might be more severe and protracted than first thought. For now, the potential for risk-off gathering momentum is high.

USD/INR rose from 54.9550 to 55.4750 as of 16:53 GMT today.

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