USD/INR: Indian Rupee Erasing Last Week’s Gains

After a positive previous week, the Indian Rupee gives back almost all its gains against the greenback. On the currency market, the value of Rupee depreciates by 27 paise at the end of the first day trading session of the new week and settled at 70.91 against the US dollar.

During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 70.97 — 70.88. The INR is expected to feel the headwinds from year-end hedging dollar demand from big importers.

The dollar index couldn’t regain its strength and slipped lower settling at the end of Monday’s trading session at 97.05 registering a -0.13% loss.

Foreign institutional investors (FIIs) remained net buyers of Indian equities and pumped in over Rs 728.13 crore on Monday, the exchange data have shown.

Elsewhere, Indian Central Bank (RBI) governor Shaktikanta Das hints that there is more scope for further rate cuts. According to RBI Governor, the central bank is waiting for the appropriate time to introduce more easing measures.

“While taking a pause we very carefully and very definitely said there is space for further monetary policy action but the timing will have to be decided in a manner that its impact is optimum and its impact is maximized,” RBI Governor said at the India Economic Conclave conference, organised by the Times Network.

Das also said that the recovery in the Asia’s third largest economy is linked to external factors such as the global economy, which “impact growth prospects for India.”

In the US, the manufacturing sector has expanded at a moderately lower pace in December, according to data published on Monday. Manufacturing PMI printed 52.5 in December versus 52.6 in November. At the same time, Service PMI inches higher to 52.2 versus 51.6 previous reading.

The domestic benchmark equity index NIFTY 50 closed down on Monday and settled at 12,053. During early Asia trading hours NIFTY 50 was seen trading higher at 12,144. Year-to-date the India stock market has gained 11.27%, benefiting from foreign investment inflow.

The Indian 10-year government bond yield was seen quoted at 6.77 versus 6.80 previous. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.