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Rupee falls on weak local shares; euro hits year low

29 Dec 2011 Evaluate

The Indian rupee slipped sharply against the dollar following the drop in euro overnight as Indian currency has been performing in tandem with the euro. Fall in rupee is driven by fears that investors may choose to pull out funds from emerging markets as concerns over economic health of euro zone resurfaced sending the euro sliding, with traders expecting the Reserve Bank of India to step in if the local unit continued its free fall. Foreign capital outflows and dollar gains against the euro and other rivals overseas, coupled with a lower opening in the domestic equity market also contributed to the fall in rupee.

The partially convertible currency is currently trading at 53.32, weaker by 24 paise from its previous close of 53.08 on Wednesday. It has touched a high and a low of 53.45 and 53.30 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.21 and for Euro it stood at 69.51 on December 28, 2011. While, the RBI's reference rate for the Yen stood at 68.39 and the reference rate for the Great Britain Pound (GBP) stood at 83.3179. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

Date1US$1GBP
December 28, 201153.21    83.32
December 27, 201152.89 82.71
RBI-Reference Rate

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