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Rupee recoups losses on RBI official's hawkish comments

20 Dec 2011 Evaluate

Indian rupee recouped losses to close steady on Tuesday as traders pared some long-dollar positions after an RBI deputy said more steps would be taken, if needed, to bring stability to the domestic forex market. Indian currency failed to scoop up any gains as strength of the local currency tracing the regional counterparts was counterbalanced by the massacre caused in Indian equity markets. On the global front, a sharp fall in Spanish short-term borrowing costs boosted the euro on Tuesday albeit in thin trade amidst fresh signs that the German economy is holding up in the teeth of the euro zone debt storm.

Finally the rupee ended at 52.90, weaker by 2 paise from its previous close of 52.88 on Monday. It has touched a high and a low of 53.08 and 52.88 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.02 and for Euro it stood at 68.99 on December 20, 2011. While, the RBI's reference rate for the Yen stood at 68.03 and the reference rate for the Great Britain Pound (GBP) stood at 82.3403. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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