Forex – Indian Rupee touches six month high against US Dollar

By FxNewsIndia – The Indian rupee has increased against the US dollar to a six-month high point in today’s forex trading action. One day after US Federal Reserve announced a new round of quantitative easing and two days after the Reserve Bank of India raised interest rates, the Indian rupee has touched its highest exchange rate since late April 2010.

The USD/INR currency pair reached the 44.20 rupee per 1 US dollar exchange rate today for the first time since April 25th, according to currency data from Oanda. The dollar had exchanged as high as 47.57 rupee on September 7th before trending lower.

The US dollar has been under renewed pressure in the forex markets today after yesterday’s announcement that the Federal Reserve will be buying $600 billion in long-term treasury securities and reinvesting up to $300 billion of the proceeds from previous mortgage purchases in attempt to stimulate the US economy.

The Reserve Bank of India raised their interest rates on November 2nd to help fight the countries inflationary pressures. The rate hike was by 25 basis points and brought the lending repo rate to 6.25 percent and the reverse repo rate to 5.25 percent.

USD/INR – The US dollar falling to a little over six month low against the Indian rupee in forex.

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