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Rupee consolidates after hitting weakest level in nearly a month

11 Sep 2014 Evaluate

Indian rupee, after depreciating for past two sessions and hitting a weakest level in nearly a month in previous session, is witnessing consolidation on Thursday on account of prevailing caution ahead of release of crucial macro-economic data such as July industrial output and August Retail inflation. 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, is also expected to edge lower to 7.80% in August from July's 7.96%. Although, Indian currency got off to a strong start on the back of dollar selling by exporters, however massive sell off in local equities took a toll on Indian currency. On the global front, U.S. dollar held near a six-year peak against the yen early on Thursday and powered to a seven-month high on its New Zealand peer, which fell after the country's central bank said the kiwi's current level was 'unjustified and unsustainable'.

The partially convertible currency is currently trading at 60.91, little changed from its previous close of 60.95 on Wednesday. The currency touched a high and low of 60.93 and 60.83 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.82 and for Euro stood at 78.65 on September 10, 2014. While, the RBI’s reference rate for the Yen stood at 57.12, the reference rate for the Great Britain Pound (GBP) stood at 98.1482. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
September 10, 201460.82 98.1482
September 9, 201460.42 97.2463

(RBI-reference rate)

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