Indian rupee snapping three consecutive sessions’ losing streak, appreciated on Wednesday as dollar inflows related to foreign funds and companies counterbalanced heavy month-end demand for the greenback from oil importers. Additionally, not so aggressive intervention from Reserve Bank of India (RBI) and dollar’s weakness overseas also aided the sentiment to some extent. The Indian currency made a weak start managed to clinch some ground on the back of aggressive bids from state run banks and importers, but erased all losses to end strong also thanks to positive local equities. On the global front, dollar held steady near an eight-week peak against a basket of major currencies on Wednesday, having edged up on the back of encouraging U.S. economic data.
Finally, the rupee ended at 58.94, stronger by 12 paise from its previous close of 59.06 on Tuesday. The currency touched a high and low of 59.22 and 58.82 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 59.07 and for Euro stood at 80.60 on May 28, 2014. While, the RBI’s reference rate for the Yen stood at 57.97, the reference rate for the Great Britain Pound (GBP) stood at 99.6140. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
