Indian Rupee Exchange Rate Today: INR GBP Softer as Traders Grew Nervous Ahead of FOMC Minutes

October 29, 2014 - Written by John Cameron

STORY LINK Indian Rupee Exchange Rate Today: INR GBP Softer as Traders Grew Nervous Ahead of FOMC Minutes

The Indian Rupee (INR) exchange rate gave up earlier gains against the Pound and other peers as investors grew increasingly cautious ahead of an eagerly anticipated Federal Reserve Statement.

The outcome of the US Central Banks two day long policy meeting for October is being closely watched by the worlds economists as they try to gauge how dovish policy makers would be.

‘FOMC will be dovish, which is already priced into the market, so I expect emerging market currencies to weaken after the FOMC statement,’ said Hemal Doshi, a currency strategist at Geojit Comtrade Ltd.

Concerns over a slowdown in the global economy have caused many traders to pare back their expectations for a Fed interest rate hike occurring before the middle of next year.

For much of the session the Indian Rupee was trading in a tight range as the market took a cautious stance towards the Fed meeting. It did find some support from continuing foreign inflows as business get their affairs in order ahead of the end of the month.

The Rupee softened slightly earlier in the session after a number of Indian banks bought US Dollars in order to meet end of month demand from importers. It did receive some support from a second consecutive day of gains in Indian stocks.

‘Rupee continues to trade in a tight range. Traders are eagerly waiting for the outcome of the Federal Reserve’s two-day policy meeting with the anticipation that the Federal Reserve will not raise interest rates for some time. The trading range for the spot Rupee is expected to be within 60.80 to 61.80 against the US Dollar,’ said Pramit Brahmbhatt, Veracity Group, CEO.

The Pound came under some pressure earlier in the session after data released by the Bank of the England showed that the number mortgages approved by UK banks fell to a 14-month low in September.

The number of mortgages approved fell to 61,267, the lowest level since July 2013, and was down from the 64,054 recorded in August. The data shows that the UK’s housing sector is cooling down, a positive move after Bank of England Governor Mark Carney warned that an overheating housing sector was a major threat to the economy.

Data also showed that business lending fell by £710 million in September,

The next data releases for the Indian Rupee are due on Friday and will be the latest Foreign Reserves, Bank Loan Growth and Deposit Growth data.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions Daily Currency Updates Indi Forecasts