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Rupee trades near three-week low level on account of dollar gains

10 Sep 2014 Evaluate

Indian rupee, after getting a weak start, was trading at its three-week low level, which was its lowest level since August 20, 2014 on Wednesday, tailing the massive losses of local equities and dollar’s gains against other currencies overseas. Besides strengthening of dollar, increased demand for the American unit from importers also put pressure on the local unit. However, some dollar selling by exporters is expected to cap further slide of Indian currency during the session. Meanwhile, prevailing caution ahead of release of crucial macro-economic data July industrial output numbers and August Retail inflation numbers. While, the street expects Industrial production to grow 1.8% from a year earlier in July, slower than June's 3.4% increase, India's consumer price inflation, closely tracked by the Reserve Bank of India to edge lower to 7.80% in August from July's 7.96%.

The partially convertible currency is currently trading at 60.77, weaker by 17 paise from its previous close of 60.60 on Tuesday. The currency touched a high and low of 60.88 and 60.75 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.42 and for Euro stood at 77.92 on September 9, 2014. While, the RBI’s reference rate for the Yen stood at 56.88, the reference rate for the Great Britain Pound (GBP) stood at 97.2463. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
September 9, 201460.42 97.2463
September 8, 201460.2697.5112

(RBI-Reference Rate)

 

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