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Rupee stuck in tight range on Friday

04 Jul 2014 Evaluate

Indian rupee was trading in a tight range on Friday in absence of any positive triggers, though slender gains of local equities was limiting any kind of sharp slide of Indian currency. Strength of American currency against basket of major currencies was mainly weighing on the sentiment. In previous session too, the local currency weakened on dollar demand from state-run banks on behalf of both importers and the Reserve Bank of India (RBI). On the global front, dollar firmed on Friday, catching a lift from U.S. stocks' surge to record highs after U.S. jobs data showed the lowest unemployment rate in six years and underscored the strength of the economic recovery.

In related development, Reserve Bank of India (RBI) restored the overseas investment limit of Indian companies to 400 percent of the firm's net worth after the rupee rebounded from last year's record low levels against the dollar. Back in August 2013, RBI had slashed overseas investment limit for companies to 100 percent of their net worth from 400 percent, in a move to curb dollar outflows and stem the rupee's slide.

The partially convertible currency is currently trading at 59.78, weaker by 4 paise from its previous close of 59.74 on Thursday. The currency has touched a high and low of 59.79 and 59.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 59.72 and for Euro stood at 81.54 on July 03, 2014. While, the RBI’s reference rate for the Yen stood at 58.62, the reference rate for the Great Britain Pound (GBP) stood at 102.4539. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
July 03, 201459.72 102.4539
July 02, 201459.97 102.8982

(RBI-Reference Rate)

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