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Indian rupee declines as Fed retains its guidance to keep interest rate zero for a considerable time

18 Sep 2014 Evaluate

Indian rupee has made a soft start on Thursday as dollar gained against other currencies overseas. The domestic currency that had surged in the last session supported by gains in other regional currencies, declined on the decision of US Federal Reserve to retain its guidance that short-term interest rates will remain near zero for a “considerable time” after the bond-buying programme is expected to end next month, leading the dollar near its four years closing high versus major peers. Meanwhile, BOJ Governor Haruhiko Kuroda is scheduled to speak today at the National Securities Industry Convention in Tokyo.

The partially convertible currency is currently trading at 61.08, lower by 17 paise from its previous close of 60.91 on Wednesday. The currency touched a high and low of 61.20 and 61.07 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.95 and for Euro stood at 78.96 on September 17, 2014. While, the RBI’s reference rate for the Yen stood at 56.87, the reference rate for the Great Britain Pound (GBP) stood at 99.3245. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

Date1US$1GBP
September 17, 201460.95 99.3245
September 16, 201461.10 99.0455
(RBI-Reference Rate)

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