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Rupee resumes depreciation after taking a breather

22 Dec 2011 Evaluate

Rattled by the concerns about a recession in Europe and continued worries about foreign fund outflows from the stock market, Indian rupee after appreciating in the previous session, again resumed its southbound journey. International investors, which are boosting bets that India’s rupee will extend the worst slide since 2008 as an economic slump deepens, have prompted a lack of confidence in the central bank’s steps to curb exchange-rate volatility.Meanwhile, sluggish local equities amidst weaker regional counterparts have also spooked the sentiment of local currency.

On the global front, euro struggling to make much headway after the European Central Bank's tender brought little respite to funding markets, languished near an 11-month low against the dollar on Thursday.

The partially convertible currency is currently trading at 52.79, weaker by 32 paise from its previous close of 52.47 on Wednesday. It has touched a high and a low of 52.84 and 52.76 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.67 and for Euro it stood at 69.12 on December 21, 2011. While, the RBI's reference rate for the Yen stood at 67.72 and the reference rate for the Great Britain Pound (GBP) stood at 82.5259. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 21 201152.67 82.5259
December 20, 201153.0282.3403
RBI-Reference Rate
 

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