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Indian rupee depreciates against dollar ahead of inflation data

16 Jan 2012 Evaluate

Curtailing the previous sessions of gain Indian rupee depreciates against dollar on the back of weak domestic shares and appreciation of the U.S. currency against the euro and other currencies overseas. Dollar gains against euro on renewed debt concerns in the region after rating agency Standard and Poor’s cut the rating of nine European nations, including top-notch France and Austria, and commented that it will decide shortly whether to downgrade the euro zone's bailout fund. Market is waiting for inflation data as it will be a big driver as lower inflation data will trigger a possible rate cut in the January 24 policy review. Recently Reserve Bank of India reduced the net overnight open position limit (NOOPL) of authorized dealers in the foreign exchange market, potentially reducing capacity of market participants for taking trading positions. 

The partially convertible rupee is currently trading at 51.65, weaker by 9 paise from its previous close of 51.56 on Friday. It has touched a high and a low of 51.78 and 51.60 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 51.4310 and for Euro it stood at 66.1743 on January 13, 2012. While, the RBI's reference rate for the Yen stood at 67.05 and the reference rate for the Great Britain Pound (GBP) stood at 79.1009. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 13, 201251.4310 79.1009
January 12, 201251.829079.4228
(RBI-Reference Rate)

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