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Rupee erases early gains; trades little changed from previous close on Tuesday

16 Sep 2014 Evaluate

Indian rupee, erasing early gains, were trading little changed on Tuesday tailing the negative local equities, though strength of dollar limited any kind of depreciation of Indian currency, which posted its worst single-day decline in nearly one-and-a-half month in the previous trading session. Meanwhile, August export data also failed to provide any solace to Indian currency. On the macro-front, adding further pressure to the government’s effort to revive the economy, India's export growth slipped to 2.35% at $26.95 billion in August, while the numbers were at five month low they took the trade deficit to four month high of to $10.83 billion, as imports of gold surged 176% after policy makers eased shipment curbs. Meanwhile, on the global front, dollar eased on Tuesday with investors reluctant to do much as they waited for fresh guidance on interest rates from the Federal Reserve, while the Australian dollar held above a six-month trough.

The partially convertible currency is currently trading at 61.11, little changed from its previous close of 61.14 on Monday. The currency touched a high and low of 61.12 and 61.01 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.99 and for Euro stood at 79.03 on September 15, 2014. While, the RBI’s reference rate for the Yen stood at 56.85, the reference rate for the Great Britain Pound (GBP) stood at 99.0978. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
September 15, 201460.99 99.0978
September 12, 201460.84 98.7251
(RBI-Reference Rate)

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