Indian rupee, after making a flattish start, was trading weaker on Tuesday on dollar demand for making oil and defence related payments amidst strength of American currencies overseas. However, strength of local equities thanks to 29-month low June Retail inflation, was capping sharper slide of Indian currency. On the macro-front, in yet another encouraging development after four-month low headline inflation numbers, provisional annual inflation rate based on all India general Consumer Price Index (CPI) (Combined) softened to 29 month low of 7.31% in June, as compared to 8.28% in May and 9.87% during the same month previous year.
On the global front, dollar edged up against the yen on Tuesday after the Bank of Japan tweaked its growth-forecast lower, although currency moves were small as investors waited for Federal Reserve Chair Janet Yellen's congressional testimony later in the session.
The partially convertible currency is currently trading at 60.20, weaker by 13 paise from its previous close of 60.07. The currency has touched a high and low of 60.24 and 60.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.00 and for Euro stood at 81.59 on July 14, 2014. While, the RBI’s reference rate for the Yen stood at 59.18, the reference rate for the Great Britain Pound (GBP) stood at 102.7166. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| July 14, 2014 | 60.00 | 102.7166 |
| July 11, 2014 | 60.18 | 103.1459 |
(RBI-Reference Rate)
