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Rupee depreciates to a month low on corporate dollar demand

18 Nov 2014 Evaluate

Indian rupee, extending its declining streak for fourth consecutive session, depreciated to a month low level on Tuesday as private oil firms incrementally bought dollars, while a broadly stronger dollar also hurt sentiment for the local currency. The sentiment also remained downbeat after October trade deficit data showed that India’s export hit a seven-month low level at $26.09 billion from $28.90 billion last month. However, euro’s strength against dollar and modest gains of local equities were keeping the losses in check. On the global front, dollar held its own on Tuesday, as investors waited to see if Japan's leader would call a snap election after the country unexpectedly slipped into recession and European Central Bank officials raised the prospects of further stimulus steps.

The partially convertible currency is currently trading at 61.81, weaker by 9 paise from its previous close of 61.72 on Monday. The currency touched a high and low of 61.87 and 61.78 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.67 and for Euro stood at 77.35 on November 17, 2014. While, the RBI’s reference rate for the Yen stood at 53.28, the reference rate for the Great Britain Pound (GBP) stood at 96.9393. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
November 17, 2014 61.6796.9393
November 14, 201461.6496.5400

(RBI-Reference Rate)

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