Indian rupee pared earlier losses amid a pullback in domestic equities and supported by robust dollar inflows. In the early morning session rupee fell 0.5% after Standard & Poor’s cut debt ratings for nine European nations including France. Howevr, the recovery cme with reports that Foreign funds boosted holdings of Indian debt by $2.6 billion this month to a record $28.7 billion on Jan. 12, while investments in stocks were raised by $489 million. Movement in the euro will now be eyed for cues on risk appetite as fears that S&P's mass euro zone sovereign rating cuts and a Greek debt standoff would worsen Europe debt crisis.
Finally the rupee ended at 51.40, stronger by 0.16 paise from its previous close of 51.56 on Friday. It has touched a high and a low of 51.78 and 50.39 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 51.6545 and for Euro it stood at 65.3173 on January 16, 2012. While, the RBI's reference rate for the Yen stood at 67.24 and the reference rate for the Great Britain Pound (GBP) stood at 79.0985. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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