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Rupee cools off from month-high levels; ends weak ahead of US jobs data

05 Sep 2014 Evaluate

Indian rupee, cooling off from a month high level scaled in previous session, weakened a bit on Friday ahead of the crucial U.S. jobs data, which could provide clues about when the Federal Reserve will start withdrawing its monetary stimulus. Additionally, negative close of local equities for second consecutive session also weighed on the sentiment of Indian currency. However, hopes of continued foreign flows provided a lid to further losses of local unit. FIIs for yet another session turned out to be net buyers in both debt and equity segment as they invested a net of Rs 447.49 crore and Rs 1665.26 crore in equity and debt segment respectively on Friday. On the global front, euro struggled to regain a footing on Friday after suffering its biggest daily fall in almost three years on the back of a surprise cut in official euro zone interest rates.

Finally the rupee ended at 60.40, little changed from its previous close of 60.36 on Thursday. The currency touched a high and low of 60.51 and 60.38 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.43 and for Euro stood at 78.19 on September 5, 2014. While, the RBI’s reference rate for the Yen stood at 57.36, the reference rate for the Great Britain Pound (GBP) stood at 98.6417. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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