Published: 5 Aug at 3 PM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, USA, India, Mexico, Sweden,
After all the steps taken by the Reserve Bank of India
to temper the Rupeeâ€™s volatility it was actually US data which helped the currency post its most significant advance in two-weeks.
On Friday US data showed that the worldâ€™s largest economy added less jobs than forecast in July, although the nationâ€™s unemployment rate did decline to 7.4 per cent.
Economists expected an increase of 185,000 positions, but the actual figure came in at a gain of 162,000.
In the aftermath of the US news the Rupee climbed by 0.5 per cent against the US Dollar, edging away from record lows and pushing back below 61 Rupee per Dollar, despite a domestic report showing a decline in services PMI.
The drop in the India's services PMI from 51.7 in June to 47.9 in July was the first for almost two years.
The HSBC index is now below the 50 mark separating growth from contraction.
According to a spokesman for HSBC: â€˜Activity in the service sector contracted in July led by a drop in new business, which also led to a decline in optimism among the surveyed companies. [...] While the RBI has to cater to the currency at the moment, it will eventually need to cater more to growth as economic activity continues to soften.â€™
The USD/INR pairing was trading in the region of 60.8800 as of 14:15 GMT.
In other currency news Sweden
â€™s Krona was able to surge following the publication of a surprisingly strong services PMI report. The Swedish index leapt from 44.9 in June to 56.6 in July, pushing above the 50 mark separating growth from contraction and trumping economists' 46.7 estimate.
Swedbank stated: â€˜This means that the total index is back in the growth-zone after having showed a weakening within the services sector during the entire second quarterâ€™.
Although the Krona climbed to 8.7559 against the Euro in response to the news, Swedbank did add: â€˜The big increase, of more than 11 index points, should be analysed with significant caution though, as July is a holiday month.â€™
The British Pound also gained on its currency peers in response to stronger-than-forecast services PMI.
Sterling strengthened against both the Euro and the US Dollar ahead of tomorrowâ€™s NIESR GDP estimate.
â€™s peso, meanwhile, was able to extend gains against a broadly softer US Dollar after a domestic consumer confidence index climbed from 93.3 to 98 in July, significantly better than the gain to 93.5 expected.
The nationâ€™s business confidence index also rose to 52.82 from a revised 51.39. This result was slightly below the 53.34 estimate.
Additional Peso volatility can be expected this week as domestic inflation data and industrial production reports are published.
As of Monday, 5th August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1577, GBP USD exchange rate was 1.5348, GBP INR exchange rate was 93.4368, and GBP MXN exchange rate was 19.4114.