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US Dollar to Indian Rupees Consolidates at 73.64 on Sept 17

US Dollar to Indian Rupees shows consolidation between the 73.50 to 73.77 levels over the past eight trading sessions, closing at 73.64 on September 17, 2021.

US Dollar to Indian Rupees on Consolidation

The USD/INR currency pair closed at 73.64 on Friday, September 17, 2021. It has support at 73.50 and resistance at 73.77 levels. The US Dollar to Rupees has strengthened by 0.27% in the last two days.

The INR against the US Dollar is at 73.53 on Friday.

The US Dollar to Indian Rupees has been consolidating at the current exchange level, within a narrow range last week, gaining strength from the banking sector. The USD to INR shows positive momentum after hitting a low at 73.50 on September 15. The USD/INR currency pair slipped to below 73.00 levels in the first week of September. It has resistance at 73.77 levels.

US Dollar to Indian Rupees at 73.64
US Dollar to Indian Rupees at 73.64

Reserve Bank of India Policy Statement

The Reserve Bank of India keeps the repo rate at 4% in the August meeting. An accommodative monetary policy is necessary to bring an economic recovery to the country and mitigate the Covid-19 negative impact, say authorities. The borrowing rate remains unchanged at 3.35%.

The reverse repo rate will remain at 3.35%. Retail inflation will go higher to 5.7% from the previous 5.1%, states the RBI, for FY2021.

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The RBI projects India’s GDP growth at 9.5% for FY22. Importance is given to renewable sources in the energy sector as crude prices soar.

India’s growth projected for 2022 is at 6.7%. China will follow next at 5.7, states the United Nations Conference on Trade and Development (UNCTAD).

Global growth will be at 5.3% in 2021, predicts UNCTAD, the fastest growth in almost five decades. But a return to the pre-pandemic levels will take longer, states the report. Even if world output grows 5.3%, it will still be 3.7% below pre-pandemic levels.

The National Statistical Office shows that real GDP growth is 20.1% for the first quarter of 2021-22.

The retail price inflation rate slowed down for the third consecutive month to 5.3% year-on-year for August 2021. It remains within the RBI target at 2 to 6%. There is a price increase in food, pan, tobacco, transport, and communication. Fuel, clothing, and footwear was at 12.9%

The employment rate has gone up to 42.40% for Q4 2021, higher than the Q3 levels at 40.90%.

The manufacturing sector has gained from the “Digital India” and “Make in India” initiatives by the Prime Minister.

Indian Trading Activities with Singapore, Hong Kong, and Pakistan

Singaporean Dollar to USD is at 0.7417. The SGD/USD faces strong resistance at 0.7460.  The India-Singapore Economic Cooperation Agreement or the CECA is a free bilateral trade agreement between India and Singapore, signed in 2005. The trade agreement helped to promote trade and economic development. Trading activities in Singapore have strengthened the Singaporean Dollar to USD in the foreign currency exchange.

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Singapore has become a tourist spot for many Indians. Both countries collaborate on aerospace engineering, space programs, aviation, biotechnology, and information technology sectors.

HK dollar to USD forex rates is at 0.1284. The HKD to USD is moving lower to the year’s low at 0.1283, the levels traded in the last week of August 2021. Imports from Hong Kong to India are worrying the Indian government. Imports from Hong Kong are telecom equipment, electronics, and computer hardware. India imports 119.02 INR billion from Hong Kong in July, much higher than the June 2021 imports at 89.24 INR billion.

Dollar to Pakistani Rupees is trading at 168.10 as of September 17, 2021. The State Bank of Pakistan has brought a stimulus of almost $1.2 billion into the economy. To protect the weakening Pakistani Rupee, the central bank has injected money into the inter-bank market. The Pakistani Rupee slipped to an all-time low at 168.90 Pakistani Rupee in the foreign exchange market. Despite political tensions between India and Pakistan, exports from India to Pakistan have gone up 6%. Pakistan imports cotton and organic chemicals from India.

The US Dollar currency trading is at the September highs at 93.17. In two trading sessions in the last week of September, it shot up almost 0.75%. The University of Michigan Consumer Sentiment data released on Friday came below expectations. The September Fed meeting provides a bullish sentiment to investors.

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USD on Two-Week Growth Momentum

The US Dollar index shows two-week growth momentum. Once it moves past the $92.30 levels, it will gain bullish momentum. The greenback has resistance at 93.50 levels in the forex market.

The US dollar exchange foreign currency sees high demand from oil companies and corporate inflows. The UD Dollar Index closed at 93.17 on Friday, September.

India has trade links with various Asian countries, which boosts the value of the Indian Rupee. Trade is improving after lockdown restrictions are easing down. Though the coronavirus scare still rages in particular states, business activities are improving. The vaccination drive is improving health conditions in the country. The economy is gaining momentum, though the fear of the third wave of the pandemic is a threat to watch out for.

 

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