Indian rupee, sliding for third consecutive session, depreciated to two-week low level on Thursday on the back of gains of dollar against basket of major currencies after Fed underscored the improving U.S. labour market, raising concerns it may raise interest rates earlier than expected. Though, losses on account of month-end dollar demand from oil importers were offset by record high levels of local equities, which were on the back of hopes of continued foreign inflows in emerging markets. Additionally, decision of relaxing FDI norms for construction sector, was another positive for Indian currency. On the global front, dollar rose to its highest in more than three weeks against a basket of currencies, buoyed by firmer U.S. yields, as the Federal Reserve sounded relatively hawkish on policy and more confident about the U.S. economic recovery.
Finally the rupee ended at 61.45, weaker by 9 paise from its previous close of 61.36 on Wednesday. The currency touched a high and low of 61.55 and 61.39 respectively. The currency touched a high and low of 61.55 and 61.39 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.46 and for Euro stood at 77.45 on October 30, 2014. While, the RBI’s reference rate for the Yen stood at 56.34, the reference rate for the Great Britain Pound (GBP) stood 98.2127. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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