Indian rupee depreciated for second straight session on Tuesday on account of dollar demand from state-run banks for oil-and defence-related payments, with some of this demand possibly made on government’s behalf for paying a part of its oil dues to Iran. However, recovery of local equity markets after five straight sessions of drubbing thanks to 29-month low June retain Inflation data prevented sharper slide of Indian currency. On the macro-front, provisional annual inflation rate based on all India general Consumer Price Index (CPI) softened to 29-month low of 7.31% in June, as compared to 8.28% in May. Meanwhile, on the global front, dollar edged up against the yen on Monday as investors awaited Federal Reserve Chair Janet Yellen's congressional testimony later in the week for clues on the outlook for U.S. monetary policy.
Finally the rupee ended at 60.13, weaker by 6 paise from its previous close of 60.07 on Monday. The currency touched a high and low of 60.24 and 60.07 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.21 and for Euro stood at 81.95 on July 15, 2014. While, the RBI’s reference rate for the Yen stood at 59.27, the reference rate for the Great Britain Pound (GBP) stood at 102.7947. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
