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Rupee recovers intra-day losses to end strong on Thursday; RBI’s intervention rumored

18 Apr 2014 Evaluate

Indian rupee, recovered its intra-day losses and ended stronger on Thursday, underpinned by massive gains of local equities, while dollar selling by large state-run banks likely on behalf of the central bank, also lifted the local unit. Indian currency, however, posted third straight weekly fall as investors squared off their positions amid the ongoing national elections. Earlier, in the session, rupee depreciated to intraday low as importers, particularly oil firms scrambled to buy dollars in a holiday-shortened week. Meanwhile, gains of Asian currencies against dollar also aided the sentiment for Indian currency. On the global front, dollar fell against a basket of currencies on Thursday after Federal Reserve Chair Janet Yellen reiterated an accommodative monetary policy.

Finally, the rupee ended at 60.29, stronger by 8 paise from its previous close of 60.37 on Wednesday. The currency touched a high and low of 60.49 and 60.26 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.38 and for Euro stood at 83.57 on April 17, 2014. While, the RBI’s reference rate for the Yen stood at 59.20, the reference rate for the Great Britain Pound (GBP) stood at 101.6325. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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