Indian rupee, after getting a tepid start and recovering some of its losses during the session, ended weak against dollar on Tuesday, tracking massive losses of local equities ahead of release of Retail inflation data, later in the day. Meanwhile, dismal headline inflation release during the day also weighed on the sentiment. On the macro-front, snapping a three-month easing trend which would give the Reserve Bank of India (RBI) less scope to support the economy amid fresh signs of slowdown, the annual rate of inflation, based on monthly WPI, edged higher to 5.70%, from multi month low at 4.68% (provisional) in month of February, 2014, as compared to 5.65% during the corresponding month of the previous year. Besides, losses of other Asian counterparts also added to pessimistic environment. On the global front, dollar firmed up against a basket of major currencies on Tuesday, staying on a firm footing after U.S. retail sales data the previous day signalled a brighter outlook for the U.S. economy.
Finally, the rupee ended at 60.23, weaker by 6 paise from its previous close of 60.17 on Friday. The currency touched a high and low of 60.34 and 60.21 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.26 and for Euro stood at 83.27 on April 15, 2014. While, the RBI’s reference rate for the Yen stood at 59.14, the reference rate for the Great Britain Pound (GBP) stood at 100.7099. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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