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Rupee ends firm on positive local shares and dollar inflows

17 Jan 2012 Evaluate

Indian rupee resumed upward journey and ended on a two-month high point on Tuesday, on the back of dollar inflows and a surge in the local equities as global risk appetite improved after better-than-expected growth data from China. Meanwhile world's biggest consumer of bullion, has changed the import duty on gold to 2% of value from the earlier flat Rs 300 per 10 grams and that of silver to 6% of value from Rs 1,500 per kilogram. The changes will nearly double the duties on both metals, which will hurt demand on import side in India. Imports of the precious metal will now get expensive impacting India's trade deficit and the rupee. However RBI seems reasonably determine at this moment and expected to intervene the currency market until rupee will come down at Rs 49 per dollar level.

Finally the rupee ended at 50.80, stronger by 0.60 paise from its previous close of 51.40 on Monday. It has touched a high and a low of 51.18 and 50.80 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 51.0650 and for Euro it stood at 64.9998 on January 17, 2012. While, the RBI's reference rate for the Yen stood at 66.59 and the reference rate for the Great Britain Pound (GBP) stood at 78.4818. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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