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Rupee resumes appreciation after two sessions of consolidation on Thursday

22 May 2014 Evaluate

Indian rupee, after consolidating in previous two trading session has yet again resumed its appreciating streak and has strengthened close to ‘58.55/$’ on Thursday, tailing strength of local equities on expectations of continued robust foreign buying in equities and debt after minutes of the U.S. Federal Reserve's last meeting backed bets of a slower withdrawal of the stimulus. Additionally, dollar’s weakness overseas is also aiding sentiment. However, RBI’s intervention may yet again curb rupee’s further appreciation, which off-lately has been aggressively building up its forex reserves. On the global front, yen was on the defensive in early Asian trade on Thursday, having retreated from multi-month highs against the euro and dollar as an improvement in risk appetite dampened demand for the safe haven currency.

The partially convertible currency is currently trading at 58.59, stronger by 19 paise from its previous close of 58.78 on Wednesday. The currency touched a high and low of 58.69 and 58.55 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 58.77 and for Euro stood at 80.56 on May 21, 2014. While, the RBI’s reference rate for the Yen stood at 58.09, the reference rate for the Great Britain Pound (GBP) stood at 99.0199. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
May 21, 201458.77 99.0199
May 20, 201458.74 98.7747

(RBI-Reference Rate)

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