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Rupee depreciates in early deals on sapped global risk appetite

13 Jun 2014 Evaluate

Indian rupee, after witnessing consolidation in previous two trading session and losing substantial ground in early deals was trading weak on Friday, on the back of sluggish global cues following tensions in Iraq and downbeat U.S. economic data, which sapped risk appetite for emerging market’s assets.  The currency, overlooking sanguine macro-economic data, got off to a weak start and has lost more ground thereafter tailing losses of other Asian currencies against dollar. Meanwhile, on the global front, while April factory output data grew at 13-month high, expanding by robust 3.4% in April, May CPI eased more than expected at 8.28% in May from its three months high figure of 8.59% in April. On the global front, dollar edged up from two-week lows against the yen in Asian trading on Friday, but remained subdued as conflict in Iraq escalated and downbeat US economic data gave investors no reason to believe the Federal Reserve will be raising interest rates anytime soon.

The partially convertible currency is currently trading at 59.42, weaker by 17 paise from its previous close of 59.25 on Thursday. The currency touched a high and low of 59.49 and 59.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 59.32 and for Euro stood at 80.30 on June 12, 2014. While, the RBI’s reference rate for the Yen stood at 58.13, the reference rate for the Great Britain Pound (GBP) stood at 99.6834. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
June 12, 201459.3399.6834
June 11, 201459.32 99.4168
(RBI-Reference Rate)

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