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Rupee trades weak on broad dollar gains post hawkish tone of Fed

21 Aug 2014 Evaluate

Indian rupee was trading weak on Thursday tracing broad dollar gains against other major currencies on concerns the Federal Reserve may increase interest rates, reducing the flow of funds to emerging markets. However, gains of local equities too some extent were limiting further downside of Indian currency. Indian currency appreciated to three weeks high in previous trading session on likely dollar sales by large foreign banks for investments in debt markets. However, the currency right from the start of trade was trading downbeat on sapped risk appetite post hawkish tone of Fed. On the global front, U.S. dollar traded at 11-month high against a basket of major currencies early on Thursday, having been given a second wind after minutes of the Federal Reserve's July meeting sounded slightly hawkish.

The partially convertible currency is currently trading at 60.69, weaker by 7 paise from its previous close of 60.62 on Wednesday. The currency touched a high and low of 60.74 and 60.61 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.66 and for Euro stood at 80.72 on August 20, 2014. While, the RBI’s reference rate for the Yen stood at 58.80, the reference rate for the Great Britain Pound (GBP) stood at 100.8076. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
August 20, 201460.66 100.8076
August 19, 201460.72 101.4792
(RBI-Reference Rate) 

 

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