The India rupee fell today, and analysts say that the most likely reason for the drop is that local importers were buying dollars. The currency dropped even as economic data from the country was rather positive.
It looks like Indian importers were buying dollars to pay their bills before the month ends, resulting in today’s drop of the rupee. The currency still looks attractive due to hopes for reforms from the new government, and yesterday’s data supports the optimistic outlook. The Reserve Bank of India reported that the current account deficit narrowed sharply from $4.2 billion in the third quarter of 2013 to $1.2 billion in the fourth quarter.
USD/INR rose from 58.7350 to 58.8850 as of 17:02 GMT today.
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