NEWS / Foreign Exchange

The Sterling rose against the Dollar as better than expected inflation data

??? The Rupee strengthened further since tight liquidity conditions have forced banks to sell Dollar. The USD/INR pair ended at 43.75 from 44.11 earlier.

??? The 6-month and 1-year forward premium was at 4.41% and 3.61% as compared to 3.58% and 3.21% previously.

??? The Sterling rose against the Dollar as better than expected inflation data along with indications of rising wage pressures have raised market expectations that the BoE might hike rates once more. EUR/USD was at 1.3289 from 1.3302 yesterday and GBP/USD was at 1.9568 from 1.9442 yesterday. USD/JPY was at 117.8 from 117.52 yesterday*.

*These levels are taken at 17:30 IST.