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Rupee rebounded on adequate IIP numbers

12 Jan 2012 Evaluate

Indian rupee rebounded on Thursday amid dollar inflows for investment in local debt and trading marginally higher ahead of an expected fall in interest rates as monetary authorities seek to boost faltering growth. However demand for dollars by oil importers limited the rise in local currency. Submissive global appetite for risk due to concerns about euro zone sovereign funding also tempered gains. Meanwhile Industrial output rose 5.9% in November from a year earlier, rebounding from an annual contraction of 5.1% a month earlier. Traders expected to make their position with better than expected domestic industrial output, which spells out direction of growth. While, European Central Bank's interest rate decision later in the day is expected to shed more light on growth expectations.

The partially convertible rupee is currently trading at 51.80, stronger by 11 paise from its previous close of 51.91 on Wednesday. It has touched a high and a low of 51.90 and 51.71 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 51.7495 and for Euro it stood at 65.9910 on January 11, 2012. While, the RBI's reference rate for the Yen stood at 67.29 and the reference rate for the Great Britain Pound (GBP) stood at 80.0099. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 11, 201251.749580.0099
January 10, 201252.225580.8399
(RBI-Reference Rate)

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