India: Rupee recovers from all-time low versus USD
October 19, 2012
By the end of September, the Indian rupee (INR) traded at 52.9 per USD, which was 5.0% stronger than the level recorded by the end of the previous month. The figure marked a 7.4% gain versus the 57.1 INR per USD recorded on 22 June, when the rupee hit a new all-time low versus the U.S. dollar. The rupee recovered following on a series of policy changes announced by the government in September, aimed at boosting economic growth and improving the country's public finances, which were received very positively by the markets, therefore improving investor sentiment and boosting appetite for Indian assets. Most recently, however, the currency has lost some ground again, with the rupee trading at 53.8 INR per USD by 19 October, the lowest level seen in a month, as strong demand for U.S. dollars by Indian importers is pushing the currency down. On an annual basis, the INR is now 9.5% weaker than in the same day last year.