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Rupee weakens after 11-month high trade deficit data

16 Jul 2014 Evaluate

Indian rupee, extending previous session’s depreciating streak, was trading weak for third consecutive session on Wednesday on persistent dollar demand from state run banks, though gains of local equities kept the losses in check. Besides, 11-month high June trade deficit at $11.76 billion added to negative milieu. As per the data released, though the imports dipped slightly to $38.24 billion against $ 39.23 billion on a month on month basis, it grew 8.3% on a year on year basis. Even exports rose 10.2% to $26.48 billion (Y-o-Y), but declined from $28 billion on a month-on month basis. Additionally, dollar’s strength against other major currencies also was weighing on the sentiment. Globally, dollar clung to modest gains early on Wednesday after bulls latched onto a comment by the head of the Federal Reserve that rates could rise sooner if employment continued to improve, while strong inflation sent sterling to a six-year high.

The partially convertible currency is currently trading at 60.18, weaker by 5 paise from its previous close of 60.13 on Tuesday. The currency touched a high and low of 60.27 and 60.18 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.

Date1US$1GBP
July 15, 201460.21 102.7947
July 14, 201460.00 102.7166

(RBI-Reference Rate)

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