Positive data continues to come from the United States, feeding speculations about stimulus tampering by the Federal Reserve. Such talks are negative for riskier currencies, including the Indian rupee, which fell today.
Yesterday’s good report about the US services sector was followed by today’s release from the Conference Board that showed an increase of the leading indicators by 0.7 percent in September. Signs of positive developments in the US economy make traders expect quantitative easing trimming next year. At the same time, Fed policy makers are divided in their opinion regarding QE tampering as some of them believe that asset purchases should be maintained at the present level for a longer period.
USD/INR rose from 61.6300 to 62.4805 as of 15:55 GMT today and its daily high was at 62.5325.
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