The Indian rupee rose today on hopes that the US Federal Reserve stimulus will maintain capital inflows into the Asian country and on expectations of an interest rate hike from the Indian central bank.
Last week’s speech of Janet Yellen, the next Fed Chairperson, made speculators believe that the US central bank will keep monetary accommodation intact and such outlook allowed investors to bring their money into emerging markets more freely. Reserve Bank of India Governor Raghuram Rajan has already raised interest rates two times since he took the office on September 4 and he may do so again in order to contain inflation.
USD/INR fell from 62.7200 to 62.4250 as pf 14:56 GMT today.
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