Indian rupee extended early gains on Wednesday as improving global risk sentiment strengthened capital inflows. The domestic currency ended on a positive note on second consecutive day despite volatile local shares and oil importers' dollar demand. In the global markets there are no signs of a resolution in the European debt crisis, consequently in the short-term, the global demand for the US dollar is expected to stay strong. RBI has introduced some measures to curb speculative foreign exchange trade and allowed banks freedom to set interest rates on non-resident Indian savings and fixed deposits but it has not helped rupee much.
Finally the rupee ended at 52.98, stronger by 25 paise from its previous close of 53.23 on Tuesday. It has touched a high and a low of 53.20 and 52.93 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.14 and for Euro it stood at 69.25 on January 4, 2012. While, the RBI's reference rate for the Yen stood at 69.31 and the reference rate for the Great Britain Pound (GBP) stood at 83.0844. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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