Indian rupee, after early choppy trade, resumed its appreciating streak and ended strong on Tuesday tailing gains of local equities. Besides, strength of other Asian currencies against dollar also aided the sentiment. However, the further upside of local currency was limited on some dollar demand by banks and oil-importers, while disappointing macro-economic report also weighed on the sentiment to some extent. On the macro-front, activity in services industry contracted for a tenth straight month in April, pushing firms to put hiring plans on hold for the first time since November. On the global front, dollar hovered near a three-week low versus a basket of currencies on Tuesday as US bond yields struggled to pull away from their recent troughs, with moves subdued in holiday-thinned trade.
Finally the rupee ended at 60.11, stronger by 11 paise from its previous close of 60.22 on Monday. The currency touched a high and low of 60.23 and 60.06 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.20 and for Euro stood at 83.55 on May 06, 2014. While, the RBI’s reference rate for the Yen stood at 59.00, the reference rate for the Great Britain Pound (GBP) stood at 101.6752. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
