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Rupee resumes depreciation after taking a breather

19 Dec 2011 Evaluate

Indian rupee after taking a breather on RBI's intervention in the previous session, failed to sustain traction on Monday. Heightened risk aversion on regional instability fears following death of North Korean leader Kim Jong-Il which sent regional counterparts lower, also dragged Indian currency lower. However, the slender recovery that came to the equity markets in the dying hours of trade, did trim some losses of Indian currency. Meanwhile, concerns that euro zone debt crisis will damage global growth pushed the euro back towards 11-month lows on Monday, also sapped the demand of Indian currency.

Finally the rupee ended at 52.88, weaker by 13 paise from its previous close of 52.75 on Friday. It touched a high and a low of 53.23 and 52.72 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.95 and for Euro it stood at 68.90 on December 19, 2011. While, the RBI's reference rate for the Yen stood at 67.95 and the reference rate for the Great Britain Pound (GBP) stood at 82.0365. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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