Indian rupee, after getting cautious to weak start, went on depreciating ground and dropped for third successive session on Wednesday on the back of colossal losses of local equities after retail inflation snapping three months easing trend stood higher than expected at 8.31% in March from 8.03% in February. Additionally, concerns over FII’s sell-off after overseas investors sold cash shares worth Rs 21.63 crore ($3.59 million) and equity derivatives worth Rs 1218 crore on Tuesday - their second straight session of selling, also weighed on the sentiment. However, the gains in other Asian currencies after strong China growth numbers, limited the fall in the rupee. On the global front, yen fell against the dollar and the euro on comments by Japan's finance minister that traders took as a sign of future buying of Tokyo stocks by its state pension fund.
Finally, the rupee ended at 60.37, weaker by 14 paise from its previous close of 60. 23 on Tuesday. The currency touched a high and low of 60.42 and 60.20 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.22 and for Euro stood at 83.29 on April 16, 2014. While, the RBI’s reference rate for the Yen stood at 58.91, the reference rate for the Great Britain Pound (GBP) stood at 100.7887. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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