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Indian rupee ends stronger amid local share pull back

09 Jan 2012 Evaluate

Indian rupee pared early losses and ended with stronger gains on Monday as local stock market pulled back from its lows. Foreign investors looking to invest in Indian debt prompted dollar inflows as foreign funds have to use up the limits to buy government debt by mid-January, which will otherwise expire. While the Reserve Bank of India's rising concern over the slowdown in the country's economic growth, market is expecting a rate cut when the central review its monetary policy on January 24. However, outcome of a meeting between the top German and French leaders later in the day is being eyed by the local currency traders for cues on risk appetite and outlook on the global economy.

Finally the rupee ended at 52.51, stronger by 21 paise from its previous close of 52.72 on Friday. It has touched a high and a low of 52.85 and 52.50 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.7325 and for Euro it stood at 67.0098 on January 9, 2012. While, the RBI's reference rate for the Yen stood at 68.54 and the reference rate for the Great Britain Pound (GBP) stood at 81.3399. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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