Indian rupee, snapping four consecutive sessions’ appreciating streak and cooling off from eleven-month high level, depreciated on Tuesday on the back of consolidation of local equities and reported intervention of Reserve bank of India, which yet again bought dollars via state run banks to build up its forex reserves to prevent any unforeseen event. However, the local unit recouped substantial losses to end little changed due to dollar’s weakness against other currencies overseas, while sustained foreign capital inflows after a clear mandate for the BJP to form a stable government at the Centre also aided the sentiment. On the global front, yen strengthened to 3 1/2-month high against the dollar and the euro on Tuesday, supported by diminishing expectations of stimulus by the Bank of Japan as well as falling U.S. and European bond yields.
Finally, the rupee ended at 58.63, weaker by 4 paise from its previous close of 58.59 on Monday. The currency touched a high and low of 58.79 and 58.51 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 58.74 and for Euro stood at 80.52 on May 20, 2014. While, the RBI’s reference rate for the Yen stood at 57.93, the reference rate for the Great Britain Pound (GBP) stood at 98.7747. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
