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Rupee continues to hold early gains on large dollar sales

30 Apr 2014 Evaluate

Indian rupee, after getting off to a good start, continued trading in fine fettle against dollar on Wednesday, on persistent dollar selling by exporters and corporate. Massive gains of local equities also underpinned the sentiment of Indian currency. However, further uptrend of local unit was limited after Reserve Bank of India signaled that it will not let the rupee appreciate beyond 60 to the dollar as it shifts to consumer prices as a basis for calculating the real effective exchange rate or REER. Nevertheless, some month-end dollar demand from banks and oil importers, which may take place during the session, could further limit rupee’s momentum. On the global front, euro nursed broad losses early on Wednesday, having been put under pressure by soft German inflation numbers while the yen stayed on the defensive ahead of a policy decision by the Bank of Japan.

The partially convertible currency is currently trading at 60.34, stronger by 9 paise from its previous close of 60.43 on Tuesday. The currency touched a high and low of 60.37 and 60.26 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.52 and for Euro stood at 83.91 on April 29, 2014. While, the RBI’s reference rate for the Yen stood at 59.01, the reference rate for the Great Britain Pound (GBP) stood at 101.7733. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
April 29, 201460.52 101.7733
April 28, 201460.50 101.6892
(RBI-Reference Rate)

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