Palaniappan Chidambaram, the Finance Minister of India, said yesterday that the latest emergency rate cut by the Fed will probably influence the next interest rate decision by the Reserve Bank of India.
The Indian rupee rose today again, making a fourth bullish day in a row after the national stock index rally attracted the investments of the global funds to into the Indian emerging economy.
Indian Finance Minister, Palaniappan Chidambaram, said yesterday that the the rupee’s value is determined only by the market participants and is not regulated by the government in any way.
Indian rupee ended the start of the week with falling to 39.41 against the U.S. dollar making it the first rupee’s bearish close after two days of growth. The rupee sellout was caused by the rumor of the Reserve Bank of India intervention in the country’s Forex market.
Indian rupee continued its decline against U.S. dollar started more than a 10 days ago. Fueled by the demand for foreign oil, dollar buying weakens rupee as the interbank Forex traders massively sell rupees.
Indian currency ended at its lowest rate against U.S. dollar on Friday, being on its weakest since October 23. USD/INR closed on 39.71 level yesterday, after international investors and global corporations were moving out their funds out of Indian currency.